Tax on Foreign Provident fund after RNOR status lapses to Resident status

SGNRI · Post by **SGNRI** » Fri Sep 28, 2012 9:21 am

Hi
I would probably be returning to India late this year/early next year.As I was an NRI for 9 preceding years, I would be an RNOR for 2 years.

I dont intend to give my foreign residency visa in Singapore (PR as it is called) as yet. Eventually it will expire in 2016.

Once it expires I will receive my provident fund (earned during my stay in Singapore, eg 100,000 SGD).

Note that tax on this amount is already paid in Singapore.(as it is a provident fund)

Now if I get this amount to India in 2016 (after my RNOR status expires) does it mean I will have to pay tax in India during FY 2016-17.? Is this amount termed as an income in India?

I know that this question is better answered by a CA but hopefully someone in the forum may have had similar experience.

Thanks
SGNRI

manish2000 · Post by **manish2000** » Wed Oct 10, 2012 5:03 am

Hello,

Myself too is in a similar boat where I am planning to return to India in Mar-2013. I have some amount in 401K which I will withdraw in piece by piece so that I can reduce the tax liability in US. During the last years, when I am no longer RNOR, but an ordinary resident, will I be taxed on the entire amount that I have transferred to India, or will I be only taxed on the small % of income which I make on the principal amount invested.

Thanks
Manish

SGNRI · Post by **SGNRI** » Wed Oct 10, 2012 8:11 pm

Manish

My question has been answered in a different thread. The 401k / CPF amount earned will not attract tax even when you become a Resident.

But remember you will need to pay tax on the interest earned on the amount.

thanks