Q.1024 NRI Pensioners from Punjab abroad will continue to get DA
Question: Sir,
I am a defence pensioner now taken permanent residency of canada.
My PDA ( PNB) is confusing me that if i convert my pension account to NRO acct my dearness relief will be stopped.
Please give me authority under which my DR will not be stopped after becoming NRI.
THANKS
KS
Answer: Dearness allowance issue came up last year for NRI pensioners from Punjab. Since you mention PNB, I assume you are a
pensioner from Punjab.
On September 16, 2016. The Punjab government finance department vide a letter had announced their intention to stop releasing
DA to their former employees who have taken citizenship abroad.
However, this decision was reversed the next month. In October 2016 the Punjab Finance Minister Parminder Singh Dhindsa gave
approval for foreign settled retired employees to get DA and an announcement to this effect was made.
As reported widely across the Indian news media on October 22, 2016. A statement was issued by Punjab government spokesman
stating, “The Punjab government has decided to take back a letter stopping DA of pensioners of state government who acquired
foreign citizenship,”
Contact you bank manager and confirm.
Kindly note that as per rules, those abroad must have their Indian pension deposited in NRO account and have no other option but to
convert their resident account to NRO account. Not doing so is illegal and your bank manager should be aware of this.
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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