Hi, I was on overseas appointment for almost 2 and a half years. I returned to India on 19th October 2018 (I was NRI for previous 2-3 years). In this period, I was getting my salary in my overseas account which was repatriated to my NRE account in SCB. After returning to India in October 2018; I was advised by bank (SCB) to change status of account from NRI/NRE to Resident. I did so. Now I have received my PF (NSSF as they call it in Tanzania, where I was working) in SCB, Tanzania account; which I am repatriating to my SCB NRE account (status Resident now; though same account number as earlier). My question- WOuld this repatriation of funds; which is PF attract Income tax in India now? What are the governing rules for this? I am Salaries class Individual Tax payer.
Dear Sir,
I understand that your status for the purpose of tax was non-resident in the year in which the interest is accrued on your provident fund account.
As the income is accrued and received outside India, the said income will not be taxable in India, even if you have transferred the PF amount to your savings account in India subsequently.
You will be liable to pay tax in respect of the income earned on subsequent transfer in India.
Thank Madam for your answer. I have two questions pertaining to your clarification A. You will be liable to pay tax in respect of the income earned on subsequent transfer in India. Did not understand this sentence (subsequent transfer)? The amount has come to my NRE (now resident- savings account). SO what are you saying 1. I will need to pay IT once I transfer the repartriated funds to some other account? (In that case, I can keep the whole amount in same account) or 2. I will need to pay tax on income generated with the repatriated amount (which is only natural). B For my ITR for the current financial year, should I declare this receipt of PF money in my savings account? If yes, how will I not pay tax now? Please help explain the process.
A) I mean you need to pay tax on income generated with the repatriated amount as mentioned in point no 2.
B) You do not need to show anywhere in ITR.
No tax is required to be paid on such amount and you don't need to show it anywhere in your ITR since you are just a salaried employee.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
- There is no tax liability on PF amount repatriated to India.
- You are required to show it in ITR under the schedule EI.
- Income earned out of repatriated amount in India will be taxable in future years i.e. investment of repatriated amount or usually interest on the balance.
Thanks
Dear Sir,
Hope you are doing well !!
No, there is no tax liability on your PF amount.
Also, there is no requirement to show it in ITR.
Thanks & Regards,
Payal Chhajed
You will need to pay tax on income generated with the repatriated amount in future years.
Hi
No, such PF amount repatriated to India shall not be chargeable to tax. However, you are required to show it in the ITR under the schedule for Exempt Income.
(#Exempt income schedule is only for reporting purpose, there's no tax levied on such income)
For the transfer of such PF amount in your accounts, there would be no tax liability.
Tax liability shall only arise on the future incomes earned through such money like interest etc; which is quite obvious.
Hi
No Tax liability arises on repatriation . You have to pay tax on future income generated out of those funds.
You can show this in ITR under Exempt income head.
Hope it helps
