Does Indian pension continue to be paid if pensioner acquires foreign citizenship?
The pensioner is a lady, the pension is her only source of income and the pension amount is below annualthreshold of Rs 1.90 lakh. What is position of Indian taxes payable in a situation where the pensioner is NRI and in the process of acquiring foreign citizenship? — Meena Raj Yes, pension will continue to be paid irrespective of change in citizenship. Take care that the pensioner redesignates her resident savings account to NRO. Once this is done, the pension may be credited to the NRO account. Indian tax is payable only if the total taxable income is above the basic exemption limit of Rs 1.60 lakh for general taxpayers, Rs 1.90 lakh for ladies and Rs 2.40 lakh for senior citizens. However, the enhanced limits are only applicable to Indian residents and not to NRIs. If the lady drawing the pension is NRI, then the general limit of Rs 1.60 lakh will be applicable to her and hence the extra amount of Rs 30,000 will be subjected to tax. Also, a tax return needs to be filed. Article cont
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