An NRI Can Continue Investing In An Existing PPF Account Till Its Maturity

A non-resident can voluntarily opt for filing an income tax return where his income is below the exemption limit. Deduction under Section 80C is available for life insurance premium paid for self, spouse and children. All taxpayers are entitled to basic exemption limit and deductions under the old tax regime

Balwant Jain

Updated on: 29 June 2024 9:53 am

NRI, invest, PPF account, maturity

My son is living overseas for the last three years and visits India for about 3-4 weeks every year. Will he have to file an income tax return (ITR) for his income from bank interest etc. in India? Can he invest in Public Provident Fund (PPF) and claim deduction under Section 80 of the Income-tax Act, 1961?

Assuming your son is employed abroad, his status will be that of a non-resident. If his aggregate income in India is not above the exemption limit applicable, he will not have to file an income tax return (ITR).

In case his income is below the exemption limit, he can voluntarily opt for filing an ITR. As a non-resident, he can continue to deposit money in his PPF account if he has an existing account, till its maturity. He will not be allowed to extend the tenure of this PPF account or open a fresh PPF account.

I had invested Rs. 50,000 per annum in a unit-linked insurance policy (Ulip) while I was working. The policy is in the name of my son who is four years old now. I had to quit my job to take care of my son and I continue to pay the premiums. Can my husband pay this premium for tax exemption?

The deduction under Section 80C of the Income-tax Act, 1961 is available in respect of premiums paid to any life insurer to keep the insurance policy on the life of the individual, the spouse and the child of the individual, in force. If your husband starts paying for the premium, the deduction will be available to him, irrespective of the fact that you were paying the premiums previously.

I have been contemplating retiring from my regular job soon and start working as a freelancer. I would like to invest a certain sum in monthly income schemes of banks and earn a decent monthly income. I would like to know whether I qualify for basic exemption, rebates on life insurance policy, PPF, mediclaim investments, etc on this monthly income?

All taxpayers, whether retired or otherwise, are entitled to the basic exemption limit as well as deductions for tax-saving investments made by them. Therefore, you can indeed qualify for insurance, mediclaim, PPF deductions etc upon payments made in these schemes by you.

Do note that these deductions are available only if you opt for old tax regime.

The author is a tax and investment expert

(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)