Hi, I would like to know that I am a british citizen, residing in India and paying indian income tax on indian?



Hi, I would like to know that : I am a british citizen, residing in India and paying indian income tax on indian income and also receiving pension in UK. I am paying income tax in UK on that pension.
1. Do i have to pay income tax in India also on that pension?
2. Do i have to show this pension income to the Indian tax authority ?

Hi, I would like to know that I am a british citizen, residing in India and paying indian income tax on indian?
Rate these answers

One Reply to “Hi, I would like to know that I am a british citizen, residing in India and paying indian income tax on indian?”

  1. In India, taxation is decided on residential status of the individual irrespective of citizenship of the person concerned. So is the case with most countries including the U.K.

    If you have lived in India for more than 183 days in a financial year starting from 1st April and ending on 31st March of next year, then, you have to pay tax on your global income which includes the U. K. too.

    But here is some good news. There exists a Double Taxation Avoidance Agreement between India and the U K. Please visit the website of incometaxindia.gov.in. Go the International Taxation and then go the DTAA page. Select UK. And read the provisions there in respect of salaries and pensions.

    I personally feel that you should show the pension also (converted in Indian rupees) in your INdian tax returns. But you will be able to deduct the amount of tax paid in UK on pension by claiming it as Relief under Section 90 of the Income Tax Act, 1961. You are liable to pay the higher rate of the two taxes (viz. Indian and UK) in total. Your relief will be limited to the actual tax paid by you in UK on your pensions.





Leave a Reply

Your email address will not be published. Required fields are marked *