Personal Finance & Money Asked by Krishan Attre on August 29, 2020
I have been service in an Indian company for 10 years and now getting transferred to US. I want to keep the PF and not withdraw as I don’t need money and it will earn good 8.5% interest for next 3 years. I heard that if I withdraw this money later when I start filling taxes in US all the interest earned on PF (even the interest in previous years and not just these 3 years) will need to be declared as income and would come under tax. Is this true?
My assumption was that only interest earned after I convert to NRI status is the one which becomes taxable. Please clarify.
According to indian laws :
Any interest income accrued on EPF post retirement/resignation is taxable in your hands
So if India is taxing it, there should be a dtaa with US, which can help you out.
Answered by Abdul Rehman Sayed on August 29, 2020
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