27 March 2012
A doctor resides in UK for 10 years and during such period he receives remuneration from UK Govt. Now he has returned to India and become resident of India, but continues to receive pension from UK Govt. for service rendered to them. Please tell me whether the pension received from abroad (UK) by the doctor would be taxable in India or not ? or whether it will be taxable in UK ?
Please give replies supported by relevant case laws, notifications, circulars and section
28 March 2012
As per the DTAA, any pension paid by the Government of UK to any individual in respect of services rendered to that Government shall be taxable only in UK.