Pension from Uk

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Prabhat (Querist)

16 July 2011 I have opened a account in SBI Uk. My pension earned from UK goes into this account. From this a/c certain amount goes to my RFC a/c in india. Is this pesion income both in uk a/c and rfc a/c taxable or taxfree in my IT return?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 July 2011 Pension accrued and received outside India is not an Indian Income.
Such Income is taxable in India in case of Ordinarily Residents only. However rebate may be taken of taxes paid in the country of origin.
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In case of NRI and NOR it is not taxable.

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After receiving the pension in UK a/c where ever it goes, it is deemed as remittance and such it does not become taxable.
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CA. Anuj Gupta

CA. Anuj Gupta (Expert)

25 July 2011 I presume here that Mr. prabhat that you have become Indian resident and are receiving pension from UK for services rendered in UK.

Pension received by resident of India is taxable in India.This is as per section 5 of the I T Act.

Also as per Double Taxation Avoidance Agreement signed between India and UK , pension received in UK from UK company/organisation based in UK is taxable only in INDIA

However Pension given by UK GOVERNMENT in UK to a resident of India is subject to tax according to UK tax laws.

Anuj
+91-9810106211
femaquery@gmail.com

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