Q.841 Tax on Canadian Pension

income when living in India . . .

Question: Hi Mr. Chand, I am a Canadian citizen who wants return to India for living in India for most part of the year. I do not have any Indian income. I get Canadian pension on which I pay Canadian Tax as a resident. Is it necessary for me to pay tax in India for my Canadian pension income if I stay for more than 200 days in India? Thanks Joy [January 28, 2016] Answer: As a Canadian citizen by virtue of the Agreement between the Government of Canada and the Government of India for the Avoidance of Double Taxation, tax on pension income is payable only in the country where the pension is paid from. So a pension that is paid by the government of Canada is taxable in Canada only and not in India regardless of how long you stay in India. Here is an excerpt from the India/Canada DTAA from article 18 which deals with tax on pension income under the double tax agreement: 1. Pensions arising in a Contracting State shall be taxable only in that State. 2. Pensions shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State You may perhaps also view the answer to question #736 titled ‘Pension received in India is exempt from tax in Canada - DTAA’ Click HERE to view the entire DTAA agreement between Canada & India. When on the page scroll down to Article 18.