Gains in Roll over IRA taxed in India for OCAs?

livetotrade · Post by **livetotrade** » Tue Oct 18, 2011 6:33 pm

Folks,

I read the dual taxation treaty articles, and no where do they say capitol gains in IRA are tax deferred for U,S citizens who move to India and living there and filing taxes as residents.

Could some one point me to solid document or is there tax attorney here who is specialized in this can vouch by this?

-IRATrader

Desi · Post by **Desi** » Tue Oct 18, 2011 9:42 pm

There are many threads on IRA and 401K taxation in India. IRA and 401K are US creations to defer taxes and as such as far as India is concerned, such vehicles as IRA and 401K are not material to them. What is material to them is that IRA contains assets that belong to you and any gains on those assets will be taxable to you as the gains acrue (dividends, interest or cap gain realization on sale). Whether you withdraw the money from IRA or not is not material as far as India is concerned. If you withdraw your own assets, there is no tax on that action. Tax is on the action of say a sale of a capital asset.