US Tax on PPF and EPF a/c

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Mezz
Posts: 7
Joined: Sun Apr 17, 2011 8:33 pm

US Tax on PPF and EPF a/c

Post by Mezz »

Tax Gurus,

I searched lot of threads. but didn't get clear answer for the following :

1. . My wife and I have PPF a/c. I had opened these 12 years back. I came to US 8 years back. My understanding is that US tax is not payable on it, till I withdraw the money. Can you please confirm.

2. I have EPF a/c in India which I never closed, even though I have been working for US firm for last 8 years. My understanding is that US tax is not payable on it, till I withdraw the money. Can you please confirm.
greyfri
Posts: 901
Joined: Thu May 05, 2011 8:28 pm

US Tax on PPF and EPF a/c

Post by greyfri »

Mezz;390164Tax Gurus,

I searched lot of threads. but didn't get clear answer for the following :

1. . My wife and I have PPF a/c. I had opened these 12 years back. I came to US 8 years back. My understanding is that US tax is not payable on it, till I withdraw the money. Can you please confirm.

2. I have EPF a/c in India which I never closed, even though I have been working for US firm for last 8 years. My understanding is that US tax is not payable on it, till I withdraw the money. Can you please confirm.


Tax is payable on both yearly.
Mezz
Posts: 7
Joined: Sun Apr 17, 2011 8:33 pm

US Tax on PPF and EPF a/c

Post by Mezz »

Can't this be treated as Blocked Income and interest paid at end of 15 years for PPF ???
greyfri
Posts: 901
Joined: Thu May 05, 2011 8:28 pm

US Tax on PPF and EPF a/c

Post by greyfri »

Mezz;390217Can't this be treated as Blocked Income and interest paid at end of 15 years for PPF ???


Almost certainly not. You can start withdrawing after 5 years. I doubt you could even defer income over the first five years, for that matter.
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