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 annual threshold 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.
Recently I came across some communication from my bank in India informing me about a changed law related to repatriation and remittance from India. It was mentioned that some form has to be uploaded by the customer (me) online etc. The language was too technical and I could not follow much of this jargon. Could you throw some light on what has changed and how it affects any remittancess I may need to make in
the future? — PK Vora
The procedure for the remittance process has been modified from July 2009 as follows. First, you would need to provide the bank with a certificate from an Indian Chartered Accountant.
This certificate is to be provided in prescribed Form 15CB. You would also need to fill out Form 15CA. This Form 15CA also known as the ‘undertaking’ requires the remitter to furnish certain specified details (like name of the bank to which the money is to be credited, etc) regarding the proposed remittance.
The information to be furnished in Form 15CA is to be filled using the information contained in Form 15CB (certificate). Form 15CA has to be then uploaded on www.tin-nsdl.com. The remitter will then take a print out of this filled up Form 15CA (which will bear an acknowledgement number generated by the system) and sign it.
The duly signed Form 15CA (undertaking) and Form 15CB (certificate), has to be submitted to the bank who will in turn forward a copy the certificate and undertaking to the Assessing Officer concerned. Once this is done, the funds may be remitted abroad. Please note that though the procedure seems complicated at first glance, it basically amounts to filling out of two forms, one of which will be done by the chartered accountant concerned. The other one has to be filled online and then printed out with the system generated acknowledgement number.
Submission of both these documents is all that is needed to effect the remittance.
The writer is director, Wonderland Consultants a tax and financial
planning firm. He may be contacted at email@example.com