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  • Category: Central Government

    Will there be any impact on my central government pension if I take green card for living in USA?

    Have a query about issue of US green card to a government employee? Wondering if the green holder can get pension or whether prior permission needs to be sought? No worries, read the advice from experts on this page and decide how to get a green card.

    I am a central government pensioner in India. Will there be any impact on my pension, if I take green card for residing in USA? Can central government pension be received in a foreign country? Is it required that prior permission is obtained before taking green card for continuing pension?
  • Answers

    3 Answers found.
  • No, there would not be any impact in the way you are getting pension. However, you have to accomplish certain formalities listed below-
    1) You have to ensure that tax - return for at least three years have been filled up from the existing circle.
    2) An official information regarding the place where you are likely to stay is to be sent to your ex- employer.
    3) Your pension can be remitted to the Bank at USA for which you have applied. The amount would be paid in foreign - exchange after deduction of applicable commission in such cases.
    4) You need to contact the foreign embassy of USA located in Delhi for the further queries in this regard.
    5) You need to preserve the No Objection Certificate issued by your parental department in order to avoid any Law - complication arising out of your shift from the present place located in India to the place you are likely to be shifted in USA.
    6) For your own safety and so for your wife, you need to report to the Indian embassy located in USA.

  • There is no impact on receiving your pension if you are living in USA. Pension is a secure deposits and you have the right to get it, doesn't matter where you live either in India or in abroad.
    Points mentioned above by Mr. Shankar Jha would definitely be helpful. In addition I would like to suggest you to contact the bank where you are getting the pension funds. Discuss with the bank manager about your plan to stay in USA.
    Bank manager would be the correct person to advise you that how you can withdraw your pension funds in USA from Indian bank account. You may also visit USA embassy to discuss such things. They will guide you the way that would definitely be helpful.

    Wish you a happy retirement. Stay happier, healthier and wealthier.

  • As long as you are submitting your IT returns and the applicable tax is being paid, You will not have any problem in receiving your pension. The place of living is to be declared by you to your Employer where from you retired. You should also obtain a NOC from your employer regarding your stay in the USA. Once you take care of these two points you will not face any problem in receiving your pension.
    As mentioned above, all US citizens, green card holders and residents must pay taxes in the US on their global income.According to the Indian income tax rules, a non-resident Indian must pay taxes in India on any income that accrues in India. So, according to this rule, A person has to pay tax in India also
    As this gives rise to double taxation, we would need to refer to the Double Taxation Avoidance Agreement (DTAA) between India and the US for relief on this matter.
    Double taxation avoidance
    There are two articles in the DTAA that deal with pension. Article 19 talks about Government pension and Article 20 talks about the private pension.
    Article 19 states:
    (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that state or subdivision or authority shall be taxable only in that State (India).
    (b) However, such pension shall be taxable only in the other Contracting State (US) if the individual is a resident of, and a national of, that State.
    So you have to pay tax in the USA and you will be eligible to get the pension.

    always confident

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