PPF withdrawals by NRIs can be done after following a certain procedure. We at NRIWAY assist you with getting your PPF withdrawals.
Public provident fund (PPF) is a safe saving scheme for NRI people and gives more tax benefits to each of them. Anybody can invest money for 15 years and the maximum amount to be invested is 1.5 Lacs. But one should keep up to date about the changes in new PPF with drawl rules when he shifts in foreign country to become non resident Indian.
In brief Indian govt. said in October 2017, those non resident PPF accounts would be converted to normal saving account who are likely near to move in a foreign country soon. But later subsequently government made a big change to the current scenario where non-residents can continue their PPF account even if they change their citizenship. PPF withdrawal gives flexibility to its account holder in which an account holder can partially debit amount after completion of 7 years if he needs any time. One major advantage of PPF account is that interests and amount deposited both are free from tax when someone withdraws it.
NRIWAY is trusted partner for NRI for resolving all kinds of requests put by them instantly. So PPF withdraws for NRI is an easier task today with us and get highly satisfied on time always seeking for NRI queries.
PPF account may be closed even before the maturity of 15 years in some conditions and to take advantage of taxation people usually go for PPF opening scheme. PPF account provides flexibility to withdrawal amount partially either after 5 years or 7 years as per someone need for the health-related problem or educational purposes. So main thing to be noticed here is you can apply for closing a PPF account after a minimum of 5 financial years.
To know everything about PPF account opening, tax benefits to withdrawal rules- follow our complete article. When you need to withdrawal some amount someone needs to fill Form C with the concerned branch of the bank where you manage your PPF account. There are 3 sections of this form:
Declaration Section: In this section, you just need to provide your PPF account number, amount of money you want to withdraw. Along with that, you must tell how many years already passed over since the account is maintained.
Office Usage Section: It consists of the following:
Bank Detail Section: Under this section, a bank name, branch, etc. are to be taken where PPF amount is being credited. A PPF passbook also required to be attached with PPF withdrawal form.
An NRI cannot invest in the PPF account. Nevertheless, if somebody's residential status subsequently transforms to NRI, the account is permitted to be run till it reaches maturity. PPF account is a 15-year scheme that can be extended for an indefinite period in blocks of five years.
The following table will assist you to understand the taxability on withdrawal of PPF with no trouble:
Serial No |
Scenario |
Taxability |
1 |
Amount withdrawn is < Rs 50,000 before completion of 5 years of uninterrupted service |
No TDS. On the other hand, if the individual falls under the chargeable group, he has to present such PPF withdrawal in his return of income |
2 |
Amount withdrawn is > Rs 50,000 before completion of 5 years of uninterrupted service |
TDS at 10% if PAN is provided; No TDS in case Form 15G/15H is provided |
3 |
Withdrawal of PPF after 5 years of uninterrupted service |
No TDS. Additionally, the individual need not present the same in the return of income as such withdrawal is excused from income tax |
4 |
Relocation of PF from one account to a new account upon a change of job |
No TDS. In addition, the individual should not present the same in return of income as it is not liable to tax. |
5 |
Before completion of 5 years of uninterrupted service\ if service is terminated due to the employee’s poor health The business of the owner is suspended or the reasons for withdrawal are ahead of the worker’s control |
No TDS. Moreover, the person need not present the same in the return of income as such withdrawal is not liable to tax |
Under the Public Provident Fund Scheme, NRIs are not entitled to open a PPF account. Nevertheless, they are permitted to invest in PPF in India on a non-repatriation base till maturity of the Public Provident Fund account that was opened when he/she was the inhabitant of India.
On 3 October 2017, a notice was published by the ministry of finance modifying the provisions of the PPF Scheme indicating that an Indian resident who opened an account under the PPF scheme shortly turns into a non-resident throughout the currency of the maturity period, the PPF account is supposed to be deemed to be closed from the date of amendment of residential status from resident to non-resident.
On the other hand, the recent amendment notice has been kept in abeyance till additional orders by an Office Order from the ministry of finance in February 2018. Therefore, an NRI can carry on contributing towards PPF in India on a non-repatriation base till maturity if the Public Provident Fund account was opened when the person was resident of India.
Under the income tax law, any amount acquired from the Public Provident Fund account is excused from tax in India, regardless of the residential status. As soon as you put in the matured amount in fixed deposits in India sustained in an NRO account, the interest income from these fixed deposits will be liable to tax in India, contingent on any respite under India’s Double Tax Avoidance Agreement with the country in which you might be a tax resident that can be availed by providing a tax residency official document along with other specified details.
The balance in the NRO account can be repatriated in a foreign country up to a limit of USD 1 million per financial year.
Of course, the PPF withdrawal will be liable to tax as income, and you are supposed to incorporate it into your ITR under the subtitle 'Income from Salary.'
You ought to fill in the PF Withdrawal Forms recognized as Form 19 that can be downloaded without problems by logging on to the authorized PPF website at www.epfindia.org.in.
An NRI cannot invest in the PPF account. Nevertheless, if somebody's residential status subsequently transforms to NRI, the account is permitted to be run till it reaches maturity. PPF account is a 15-year scheme that can be extended for an indefinite period in blocks of five years. On the other hand, for a resident turned NRI, the extension is not permissible.
Of course, the PPF withdrawal will be liable to tax as income, and you are supposed to incorporate it into your ITR under the headline 'Income from Salary.'
The Ministry of Finance, Government of India declares the rate of interest for Public Provident Fund account each quarter. The present interest rate effectual from 1 October 2018 is 8.0% Per Annum' (compounded once a year).
Non-Resident Indians (NRIs) are not allowed to open a Public Provident Fund account. If an individual turns out to be an NRI after opening the Public Provident Fund account, he or she can carry on to maintain his account but is not allowed to extend its period further as soon as the term is completed.
The Non-Resident Indians cannot invest in Public Provident Fund. However, if somebody's residential status later changes to Non-Resident Indian; the account is permitted to be run till maturity. Public Provident Fund is a 15-year scheme that can be extended until further notice in blocks of five years. On the other hand, for a resident turned Non-Resident Indian, the extension is not permitted.
How Nri Withdrawal PPF In India, What Are Steps To PPF Withdrawl In India For Nri, Ppf Withdrawal For NRI, NRI PPF, PPF Withdrawal Rules, Ppf Withdrawal Rules For Nri, Pf Withdrawal For Nri, Ppf Withdrawal Rules After 15 Years, Ppf Withdrawal Rules, Ppf For Nri, Close Ppf Account Nri, Can We Withdraw Money From Ppf Account Before Maturity, Ppf Withdrawal Rules After Maturity, Ppf Withdrawal After 15 Years Extension, Can I Close Ppf Account Before Maturity, Ppf Withdrawal Form, Tax On Pf Withdrawal After 5 Years India, Ppf Withdrawal After 7 Years, Ppf Extension Rules
Government, Legal and incidental charges may apply. After verifying the documentation, we would let you know the additional payments required for this service.
Cancel your order within 48 Hours or if you do not want to proceed with additional payments . 100% refunds with no question asked.