People leave their home countries for greener pastures and other reasons such as career growth, international exposure, lifestyle improvement etc. There are those who stay back in the host country and make it their home while others move back after a long stay. Nostalgia draws many such wanderers back to their people in their homeland. But, there is one particular question that daunts these homebound drifters which revolves around wrapping-up their finances in the other country.
There is a fear that their savings will be taxed heavily by their host country when they try moving them to their home country. To help these overseas workers, Indian government launched Mahatma Gandhi Pravasi Suraksha Yojna (MGPSY) in 2012 to facilitate seamless transfer of pension funds to India, without having to undergo a hefty tax slap on same by the host country (or the non-resident country).
Who can avail?
The scheme can be availed by Indian workers aged between 18-50 years and having a work permit or employment contract and a ‘Emigration Clearance required’ stamp on the their passports.
The scheme also referred to as Qualifying Recognised Overseas Pension Scheme or QROPS guarantee significant tax benefits overseas Indian workers, especially those in the UK. This pension scheme is HM Revenue and Customs (HMRC) compliant. This means the pension fund of a UK-based Indian worker will not incur undue charges, when transferred to QROPS. HMRC is the tax authority of UK that governs pension funds there.
QROPS primarily aids those Indians who have built up a pension fund in UK but plan to permanently emigrate to India with the intention to retire there.
Benefits of transferring your pension fund kitty to QROPS
Pension schemes apply to HMRC to become QROPS. A list of qualified QROPS (if opted by the scheme) is available on the HMRC website. Several Indian banks offer related pension schemes that are offered along with attractive benefits.
About HDFC Life
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. HDFC Life also offers various HMRC approved QROPS Plans.