Q.1013 Australian pension taxed in India on becoming resident of
India
Question: Hi I am an Australian retired Citizen (and OCI). Considering whether to become Indian resident for tax purposes in 1-2 years time based on optimising after tax investment income at the same time have Superannuation in Australia from which there will be pension withdrawn every year. My understanding is: - At present we don't have home in Mumbai and can buy one so we have a fixed place and we can relocate here; -question I want to ask if we have our own superannuation fund in Australia- fund will be taxed (or tax free after 60 years of age ) in Australia but is this pension drawn from Australia- is it taxable in India under DTAA? Once we are tax residents in India? Regards Umesh Answer: India and Australia have signed a Double Tax Avoidance Treaty [DTAA] to protect their citizens from double taxation of the same income. Under the India/Australia DTAA agreement, pensions (not including government pensions*) and annuities paid to a resident of one of the Contracting States shall be taxable only in that State. Hence if you become a resident of India for taxation purposes, then your Australian pension received in India will be taxable in India only. Those receiving government pensions however, may not be taxed in India, for more clarification on government pension exclusion refer to article 19 of DTAA. Visitors of this page may also be interested in the information provided below:Social Agreement between Australia & India
A Social Security Agreement signed between Australia and India came into effect as of 1 January 2016. Under this Agreement, Australia and India share responsibility for pensions to people who would not otherwise be entitled because they do not have enough residence in Australia or sufficient insurance periods in India. It also helps people who could not otherwise claim because they are living abroad. For more information and how to make a claim under this agreement, Australian citizens can contact Centrelink International Services. Their telephone number is 13 1673 from within Australia. Those overseas can email them at: international.services@humanservices.gov.au
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional
accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been
stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail.
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Q.1013 Australian pension
taxed in India on becoming
resident of India
Question: Hi I am an Australian retired Citizen (and OCI). Considering whether to become Indian resident for tax purposes in 1-2 years time based on optimising after tax investment income at the same time have Superannuation in Australia from which there will be pension withdrawn every year. My understanding is: - At present we don't have home in Mumbai and can buy one so we have a fixed place and we can relocate here; -question I want to ask if we have our own superannuation fund in Australia- fund will be taxed (or tax free after 60 years of age ) in Australia but is this pension drawn from Australia- is it taxable in India under DTAA? Once we are tax residents in India? Regards Umesh Answer: India and Australia have signed a Double Tax Avoidance Treaty [DTAA] to protect their citizens from double taxation of the same income. Under the India/Australia DTAA agreement, pensions (not including government pensions*) and annuities paid to a resident of one of the Contracting States shall be taxable only in that State. Hence if you become a resident of India for taxation purposes, then your Australian pension received in India will be taxable in India only. Those receiving government pensions however, may not be taxed in India, for more clarification on government pension exclusion refer to article 19 of DTAA. Visitors of this page may also be interested in the information provided below:Social Agreement between Australia &
India
A Social Security Agreement signed between Australia and India came into effect as of 1 January 2016. Under this Agreement, Australia and India share responsibility for pensions to people who would not otherwise be entitled because they do not have enough residence in Australia or sufficient insurance periods in India. It also helps people who could not otherwise claim because they are living abroad. For more information and how to make a claim under this agreement, Australian citizens can contact Centrelink International Services. Their telephone number is 13 1673 from within Australia. Those overseas can email them at: international.services@humanservices.gov.au
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