Resident taxation

Tax queries 175 views 6 replies

I will become RNOR  this FY 19-20  for  next 3 financial years as I qualify having spent less than 729days in 7 yrs prior to this FY19-20. My question is being a Singapore Citizen I have a compulsory provident fund and  only earn interest on this on the balances.I have not made any salary contribution to the funds for over 18yrs as have not lived nor worked in Singapore since.

Will I be taxed on the interest accrued for FY19-20 ,FY20-21  & 21-22 .Further I start getting monthly pension from FY22-23

Thanks and regards

Replies (6)

Any interest which is not earned or accrued in India, is not taxable in IT act, for RNOR.

Singapore Govt provident fund will credit your "interest on the your PF corpus balances " in to local Singapore SB account or remit to your India NRO/RNRO account?

similarly your Singapore Govt pension from FY22-23 will credit to your singapore sb or swift transfer to your India accounts?

Agree with above replies.

I know under Rnor it is not taxable.But when I become resident what happens?

Thank you for the post.I am aware that there is no tax as long as one is under RNOR status.I asked specifically once I become a resident in FY22-23 and will be getting monthly pensions from Provident Fund Board Singapore.What happens then.Would I be forced to close my account in Singapore and are forced to repatriate the monhtly pension to India account and if so what are the tax angle?

Your are wise not to close your singapore SB account (as it is easy for the Singapore PF to be credited thro the local bank network) 

Easy Solution : If the S$ monthly Pension amount is not big (say below S$1000=Rs 50000)- use your DBS / POSB/ UOB/OCBC banks debit card once or twice a month & with draw cash at the Indian ATM & spend as cash -dont put that money in to the banks here.( you can with draw 40K easily in one attempt) . Or you can make contacts with High street/Serangoon Forex shops & collect rupees  in cash at your doorindecision

If the pension S$ amount is big & you are signing in to your singapore bank online account & SWIFT transfering in to your Indian sb account -

Proper way : File India ITR with foreign bank account nos/ incoming pension SWIFT as your income + any other income generated in India (after all you have been here for 18 years ).

If iam an Indian citizen -open sb accounts in Singapore/ HK /UK/ Swiss etc - they report to Indian Govt ( under recent IT Pact). But since you are a singapore citizen , your govt will not share your PF interest/ Pension etc with the Indian Govt.

It is better to come clean about your foreign accounts deatils  +pension since you are going live here only.


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