431. Have Pension received in

India sent to USA

Questions: My father just became a US citizen

but draws pension from his retirement. Can he

get his pension in US currency?

sujatha Answer: Your father can have his pension sent to the United States in US currency. He does not require any permission from the RBI or any other government authority to repatriate his pension income. The RBI allows the repatriation of current income such as, pension income received in India. It is now very easy to transfer pension income received by Non Residents (NRIs) and Persons of Indian Origin (PIO). Initially the Reserve Bank of India issued a notification to bankers to allow repatriation of current earnings in India such as rent, dividend, pension, interest income subject to the person sending the money, providing a certificate from a Chartered Accountant certifying the source of the money being sent abroad and that taxes had been paid on this money. (the Reserve Bank of India [ RBI ] vide Circular dated. 14th May, 2002) The procedure was to first deposit the funds into an NRO account and then transfer the funds on the basis of the certificate from a Chartered Accountant. Chartered Accountant certificate NOT required now! The Reserve Bank of India (Circular No. 26 dated September 28, 2002) has notified all authorised dealers in foreign exchange, that they can permit NRIs and PIOs who do not maintain a NRO account and have no other taxable income in India, to remit their current income (such as pension income in your fathers case) on the basis of a simple declaration, in duplicate, certifying that they are not a tax payer in India. Hence, any non resident who does not have pension income in India that goes over the tax free income allowed in India, can easily repatriate their pension by simply giving a self written declaration. Here is an excerpt from the RBI notification: It is, therefore, clarified that such NRIs/PIOs who do not maintain NRO Account and have no taxable income in India need not submit a Chartered Accountant’s certificate for remitting their current income like dividend, rent, pension, interest etc. In such cases Authorised Dealers may obtain a simple declaration, in duplicate, from the NRIs/PIOs to the effect that he/she is not a tax payer in India. The Authorised Dealer may retain such declaration with them for future reference from Income Tax Authorities, if any. Kindly note that current income can also be credited to a NRE account in India. (RBI circular No.5 dated July 15,2002) Hope you find the information useful. Clarification: In case anyone reading this is wondering who authorised dealer are to whom RBI sends such notifications, banks are authorized dealers, as they are authorised by the RBI to deal in foreign exchange.