<figure class="wp-block-image size-large hts-content-image"><img src="https://images.unsplash.com/photo-1671964579559-66f8129bbc82" alt="Understanding PPF Investment for NRI Daughters and Section 80C Tax Benefits"/></figure>
<h2>Eligibility for PPF Contribution by NRIs</h2><p>If you are an NRI (Non-Resident Indian) wishing to invest in your daughter&#8217;s Public Provident Fund (PPF), it is essential to understand the rules governing such contributions. NRIs are permitted to contribute to an existing PPF account. However, they cannot open a new PPF account as per the Reserve Bank of India guidelines. Thus, if your daughter already holds a PPF account, you can make contributions to it, enhancing her savings for the future.</p><h2>Switching to NRO Status</h2><p>To facilitate this investment, you must ensure that your savings account associated with her PPF is converted to an NRO (Non-Resident Ordinary) account. This conversion is crucial as it complies with the regulations regarding non-resident investments in India. Once your account is in NRO status, you can contribute the required funds without any legal hurdles.</p><h2>Tax Benefits under Section 80C</h2><p>When it comes to tax benefits, contributions towards a PPF account can qualify for deductions under Section 80C of the Income Tax Act. However, it&#8217;s important to note that while your contributions keep your daughter&#8217;s PPF account active with a minimum requirement of just Rs. 500 per year, additional contributions do not yield extra tax benefits under Section 80C. Therefore, it is advisable to plan your investments judiciously to maximize your tax benefits while adhering to the established contribution limits.</p>
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