Parents can open a Public Provident Fund (PPF) account for their child, offering tax benefits and attractive interest rates. However, the ₹1.5 lakh annual contribution limit applies to the parent's total investments across all their minor children's accounts. The account transitions to the child's independent operation upon turning 18 after completing formalities.
Indian regulations strictly permit only one personal Public Provident Fund (PPF) account. Investors with duplicate accounts must identify a primary account, regularize the second through the Ministry of Finance, and understand how deposits and interest are treated, especially if annual limits are exceeded.
NRIs with tax-exempt Indian income like NRE/FCNR interest or PPF are still taxed in the US by the IRS. Such income must be reported on US tax returns (Form 1040) and accounts reported under FATCA/FBAR if thresholds are met. Inheritance in India is tax-free, but capital gains tax applies upon selling inherited assets.
NRIs with tax-exempt Indian income like NRE/FCNR interest or PPF are still taxed in the US. Experts advise reporting this income and accounts (FATCA/FBAR) to the IRS. Inheritance in India is tax-free, but capital gains tax applies upon selling inherited assets.
