NRIs In USA , UK , Canada Taxation Of Overseas Retirement Accounts In India , When You Return

[@justAnotherGoogler]

The information in this video is not relevant wrt pre-tax 401k/IRA from USA. You do not make any capital gain or dividend money annually from any fund in these. Any money in pre-tax retirement accounts is not even yours until you withdraw it(penalty free after 55+/59.5+). Logically India can only tax any withdrawal from these which are taxable events in US as well. Visit galactic advisors articles which makes far more sense regarding these.

[@chakrav6524]

There are some misunderstanding in the statements by the hosts. He stated that India taxes will be applied to capital gains and dividend/interest. Although most USA brokerages will show cost basis for the taxable accounts, most brokerages do not maintain cost basis for 401k, IRA retirement accounts since all the money is taxable during withdrawal and not just capital gains. So how will anyone figure out the capital gains if the cost basis is not available. The contributions to retirement accounts are made over many decades so very few people will keep records of how much they put into the 401k/IRA accounts to be able to calculate capital gains at the time of withdrawal. In USA if you withdraw say $1000 from 401k/IRA after age 59, you will pay full income tax say 25% on $1000=$250. How much amount will India tax be if brokerage don't provide cost basis or capital gains value.

[@RRD111]

when i asked that question - the response was - in the future, things will improve and India will know :) for the mot part, this channel is good - but off late - using some scare tactics - to generate business - like fractional real estate investment, what if you retire in India, ...

[@user-xp5rj5zk8b]

very good question. to be honest, the host are very knowledgeable and trying to be helpful But I very much doubt they are familiar with the US IRA and Roth retirement rules It's hard to expect anyone to know , unless you're dealing with it every day Just tag Nirmala, and ask her to remove the uncertainty. This will encourage many NRI to return to India

[@bigcahuna1236]

I dont think india needs NRIs back - they only want their tax money. Scare tactics in this channel are shameful. That guest has no clue about Roth IRA , IRA or 401k neither does nirmala. Just avoid returning in BJP era.

[@Ushak-y6s]

Very informative. I am a regular viewer of this channel. I am an OCI holder and would love to settle down in India after retirement, but after hearing how I would be taxed for my retirement pension makes me feel sad. I have put down additional voluntary contributions to build the pension pot and upon retirement I get to take only 25% of the total amount tax free. The rest of the amount will be invested in Approved retirement funds which pays me for next few years based on the amount I wish to take out every month which would be less than the tax limit to avoid paying tax. Now consider a salaried government employee in India who gets to take the entire PF amount upon retirement and then on top of it gets 100k as pension from government every month. He would pay say 30% as tax on that 100k which he gets without maintaining any PF amount. Whereas I would need to pay 30% of my hard earned money which is part of the PF which I had accumulated throughout my life. This is unfair.

[@NeerajSharma-np6ui]

Sad it is and somehow it doesn't make sense. You are taking your hard earned money outside India on which you will get taxed in US to India to retire. Now India wants another piece of this, which they didn't help in accruing. I'm conflicted to say the least.

[@Anand-tu2wr]

This is for indian citizens who are coming back. If you are a US citizen or similar....then US tax rules apply. You can stay in india with OCI and pay tax only on investment gains or income on properties etc in india.

[@arunmeka2940]

​@Anand-tu2wr are you sure about this? GoI will NOT tax foreign citizen OCI holder on foreign income (retirement accounts or social security)?

[@shivasiva9392]

@@NeerajSharma-np6uiwell said I am also from USA I appreciate what USA has done for me and I also appreciate what India has done for me childhood

[@vinay4886]

Thank you for another very informative video. Both you and Mr Sriram are very good! But I hope the Indian tax authorities become more sophisticated and come out with clear rules. When they ask you to ‘link PAN and Aadhar cards’ (when they should be able to do this easily themselves), it does not fill me with a lot of confidence…🤨

[@narayananpalakodev5088]

Good Video for US Citizen wanted to return back to India. Still needs few clarifications

[@sandhyagokhale247]

Sriram Rao is very intelligent 👏🏽

[@vduggir]

Sir US will give social security for non citizens also. We are eligible once we contributed to it over 10 years through an employment

[@user-xp5rj5zk8b]

it's a shame to India, and Nirmala Sitharaman for being so shortsighted about harassing, a handful of NRI who are returning back to India. they should have parity with the rules in the west, especially US or uk as the Retirement accounts originate there If US does not tax on our pretax IRA et cetera, till redemption, India should not do as well . What about Roth retirement accounts? In USA, it is invested after tax and redemption it's hundred percent tax-free. Does India Tax on that Roth IRA distributions? From this discussion looks like they do It's highly unfair and illogical and discouraging to the hundreds of Indians want to come back to their motherland they need to learn this from China and how they treat their Chinese returning back to their motherland

[@iqhirani861]

I think you were discussing about IRA (individual retirement account)… My question is as follow: I’m an OCI of Indian origin. Recently retired & getting SS & pension. all My 401K / 457 is now invested in CDs of two different banks at 4.75% for only one year. As an OCI; this taxation rule will affect me too?

[@sriramrao2514]

The taxation rules for NR & OCI's are same.... the question is whether you are resident in India, if yes, then the above taxation rules are applicable if you are holding retirement accoounts be it IRA or 401k...

[@iqhirani861]

@@sriramrao2514 I live in New York; but as retired now (& bought my retirement home in Pune;) I may often visit India.. but my survival income would be from the same SS, PENSION & PARTLY FROM THE RMD (required minimum distribution) FROM THE 401K / 457

[@sriramrao2514]

@@iqhirani861 If you become resident and ordinarily resident in India, then global income would become taxable... however since you are also seems to be a citizen of US, there might be other aspects of DTAA, tie-breaker rules etc. to be applied to determine your residential status...

[@BobbyJoinery]

who you consider oci

[@Miracle-f6i]

Is a brokerage account in India taxed annually on dividends and capital gains, even if those gains aren't withdrawn? If not, what accounts for the difference with US retirement accounts? India should align their rules with those related in the West for consistency.

[@sgeorge008]

What about Roth 401?

[@sriramrao2514]

Same rules will apply...

[@motivationshortsadda]

@@sriramrao2514 thank you. Could you please tell me that there is RRSP account in Canada. The concept of RRSP is that we can contribute now to reduce our taxes and withdraw later during retirement when tax bracket is low so we pay the least taxes. I plan to settle in India and plan to withdraw after 55-60 years of age. There is also TFSA account where the investments grow tax-free. So, how would the taxes will work for both accounts if I am an OCI or an Indian resident? Please answer.

[@user-xp5rj5zk8b]

@nrimoneyclinic , Sir - wanted to request if you could do a program on Indian Taxation on Retirement accts ( like 401k, IRAs, Roth IRA, social security payment, pension etc ) for just US based ( nris or oci) who want to return to their motherland for good. sometimes clubbing it with other nations, like Canada or UK. which has very different rules will muddle the discussion . thanks 🙏

[@RaghuramMuthukrishnanchannel]

Can you please cover Singapore CPF and the Retirement Account which are formed at age 55 gives payouts after age 65? Singapore government does not tax CPF income.

[@sriramrao2514]

Rules are same as mentioned in video... however deduction/exemption is not applicable for retirement account maintained in Singapore as on date.... its immaterial whether a country outside of India taxes such funds or not... if you are resident in India, then law of land in India would apply...

[@srikanthramachandran4687]

In US - Any withdrawals from Roth IRA and Roth 401K retirement accounts are tax free since the contributions to these funds are made initially through post tax money . In the context of this discussion, will the profits from it be taxed in India as capital gains ?

[@rajukamal]

Have the same question. It appears that it is open to interpretation. As per an article at Galactic Advisors, 1. LTCG will be payable on Roth withdrawal or 2. No tax as there is no taxable even in US. And likely that it will be interpreted as scenario #1 as it is more conservative. 😢

[@krishuda]

Very informative, sir. I have some followup questions: 1. Are earnings (interest, dividend and capital gains) from Roth IRA for someone with ROR status, taxable in India even though the same earnings are tax free in US ? 2. Can a person with ROR status use DTAA to defer the payment of taxes on Rollover IRA account ? If so, can he apply Tax Credit for taxes paid to US at the time of qualified distributions (age 59 and half) ? Will he have to pay tax to India if the US tax bracket is lower than that in India ? 3. Do the Indian Tax laws and DTAA differentiate between a 401K (employer funded) and a Rollover IRA ? Should a person with ROR keep both of these accounts or just maintain the Rollover IRA ?

[@kuruvitravelsexpress6263]

US citizen OCI card holder what will be the impact ?

[@sriramrao2514]

Impact is same as mentioned in this video... there is no different between NRI & OCI for taxation rules... the question is whether you are resident in India or not? if YES, then rules mentioned in video will be applicable

[@NeerajSharma-np6ui]

This tax just doesn't make sense since the money was not earned in India and when you withdraw that money it gets taxed in the country where the income came from. This includes principal and gains. I would understand if someone moved this money to India and accrued new income on it.

[@chandansanghai7015]

So, there will be double taxation even though the taxation is postponed?

[@Miracle-f6i]

Looks like it, not good☹

[@community1854]

Very good! Thank you! Do u advise the non residents in Sri Lanka?

[@NRIMoneyClinic]

No

[@pvmahidhar6485]

Sir, very good information. Sir in current rules, if NRI is investing in India in mutual funds, not withdrawing money from Indian mutual funds accounts, though s/he has to pay tax on notional profits. Is there any way to postpone the tax with honesty. Thanks for making great knowledge sessions until now.😊

[@greenapple9204]

Would it be suggested to withdraw my 401K in US(pay penalty of 30% total here obviously) before coming to India? Will it be taxed in India?

[@PK-uk3gh]

If this is true for 401K or retirement account - Its stupidity to tax when you are not touching the money still within retirment account. Indian tax laws are joke 😂😂😂😂😂😂

[@anilprasanna]

This is exactly why i have not opted for 401 K. 401 Ks are utter waste of money if your employer does not contribute equally

[@anilprasanna]

Please listen to video fully and you will get your answers. India can extract any information easily. You will regret big time later if you avoid taxes wilfully.

[@anilprasanna]

I have a query maybe you can help. Suppose i have 40 lacs NRO FD generating 2.5 lacs interest in india. Since it is within the tax limit i do not pay any taxes to india. But i have to declare NRO FD to IRS as well. How can i avail DTAA ? Since FBAR declaration is mandatory as per FATCA rules, IRS knows that i have NRO FD and wants to tax that interest too unless i show that i paid taxes to india.

[@sriramrao2514]

@@anilprasanna Since you have not paid any taxes in India & claimed refund of TDS, there would be no question of claiming foreign tax credit in US by applying DTAA provisions. You will have to pay taxes in India... DTAA provides relief only for double taxation & however DTAA will not facilitate double non-taxation...

[@anilprasanna]

Thank you so much for your expert advice. I understand now

[@NeerajSharma-np6ui]

​@anilprasanna I'm surprised that the bank is not withholding TDS. Since you are an NRI the bank should withhold TDS and you will declare the amount on your US tax return. Since you had interest income in India you wil also file a tax return in India to claim the TDS Since your interest income is below 250000 threshold. You mentioned the account is NRO. Only on NRE account no TDS is withheld