-Name withheld on requestSince you have been residing in India since 2020, you qualify as resident for the current financial year as per the Indian tax laws. Hence, your global income is subject to tax in India. We assume the accumulated balance in your Singapore PF account consists of your and your employer's contributions, along with interest accrued. According to Indian tax provisions, your overseas PF account is considered an unrecognized provident fund. Payment related to employer's contribution and any accrued interest will be taxed in India under the head 'income from salary,' at your applicable slab rate (plus surcharge and cess).However, payments relating to your contributions will be considered a return of your contribution and are not taxable. The interest on your contribution will be taxed under 'income from other sources,' at your applicable slab rate (plus surcharge and cess). If these amounts are not taxed in Singapore, you cannot claim a tax credit here, but if they are taxable in Singapore, you could claim tax credit under India-Singapore DTAA. Non-government retirement benefits are covered by Article 19 of the DTAA. According to this article, pensions and annuities paid to Indian residents from Singapore are taxable only in India. But, a one-time withdrawal from PF is not considered a 'pension,' as pensions are periodic payments for past services. Thus, it falls under Article 23 of the DTAA, which allows Singapore to tax this amount under domestic laws.An alternative interpretation is one-time payments may fall under 'other similar remuneration' in Article 15, which covers employment income. OECD Model Tax Convention Commentary interpreted this to include lump-sum retirement benefits. Under Article 15, Singapore has the right to tax this amount, if applicable.Harshal Bhuta is partner at P. R. Bhuta CAs.

Is overseas PF withdrawal taxable in India?

1014,2403,981,71,2023,3134

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