Ppf and epf for NRI

It's a big change , a very big impact to the way indians saving schemes are impacted by changing residency status.

Now all of us know a few people who have moved to outside of India for a couple of years because of work.

The Indian government calls anyone works for less than 180 days a year in India as a non resident status.

Usually depending on the way people move abroad they had still some significant benefits on epf and ppf. This means that they were still able to get the high tax free interest rates even if they were an NRI.

Now this is set to change. As per the latest ammendment to the rule , these high benefits will not be provided to them. They will get the interest rates as applicable to savings accounts.

The same thing applies for ppf. NRI will not be allowed to invest and any existing ones will be provided interest only using the savings rate.

These are some of the leakages that the government is plugging in the way the government provides subsidies to Indian employees.

It's a good thing to identify leakages and plug them.. it's simplefinancialsense.