Ten years ago I had opened a PPF account. However, for the past four years I am residing abroad and am an NRI now. Can I continue my contribution and also claim breaks?
Surojit Bose, Singapore
As a resident Indian who has now become an NRI, you may continue to deposit funds into your existing PPF account and claim the available tax benefits. However, as per Rule 3 of the Public Provident Fund Scheme, non-residents are not eligible to open a PPF account and only Indian residents can open one. In your case, you can continue to put money in the account and also claim tax deduction under section 80C of the Income-tax Act, 1961, on account of contribution made up to Rs 1.5 lakh in a financial year.
