Tax on Retirement Benefits Withdrawal from Foreign Country

Sir, I had worked for a company in India for 5+ years and then worked for 3 years in Germany for the same company and came back to India. I was contributing monthly to these retirement benefits in Germany after all taxes. Germany call it differently like Pension Insurance but it is same like PF of India. Germany Pension Office allows to withdraw employee contributions after 2 years from leaving their country. Hence I withdrew the retirement benefits to India Savings Account and opened Fixed Desposit after becoming Indian resident.

I feel this is not an income and not taxable.

Kindly advise whether my understanding is correct. Kindly advise whether I need to declare this under the Schedule Exempt Income --> "Withdrawal from PF Satuatory" . I can see that bank has reported SFT for this entire Fixed Deposit amount in my AIS. Hence feeling to declare it in ITR.

Replies (3)
Quick Summary
This discussion explores the tax implications of withdrawing retirement benefits from Germany and depositing them into an Indian savings account. The original poster believes these funds, after being taxed in Germany, should not be subject to further tax in India. However, it's clarified that as a resident Indian, all global income is taxable. The conversation then delves into potential partial exemptions for commuted pensions, particularly when gratuity is not received.

Being Resident  Indian, all your global income is taxable in India, be it PF withdrawal or any other/

Sir, If taxable can I get partial exemption like below. My Germany Pension is 100% commuted.

Commuted or lump sum pension received by non-government employee is partially exempt depending on whether gratuity is also received by the person. If a person does not receive gratuity but receives only pension – If 100% of the pension was commuted, ½  of pension amount is exempt.  Kindly share your thoughts.

Yes, eligible.               

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