Finance

UK Pension Income: how is it taxed for NRIs in India?

UK Pension Income: how is it taxed for NRIs in India?
Photo credit: Livemint
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A returning NRI’s UK workplace pension is tax-free in India while they qualify as RNOR, but becomes taxable as salary income once they become ROR, even if it remains in a UK bank account.

As an RNOR, the pension payout received under the UK workplace pension scheme in your UK bank account would not be taxable in India
As an RNOR, the pension payout received under the UK workplace pension scheme in your UK bank account would not be taxable in India
Photo credit: Livemint

I am a retired Non-Resident Indian (NRI) living in the UK for over four decades and plan to relocate permanently to India. I currently receive a monthly pension in my UK bank account under the Nest Pensions scheme, to which I contributed through my employer during my working years. Will this pension be taxable in India after I relocate, even if it continues to be received in the UK?

—Name withheld on request

Based on the facts you provided, it is assumed that upon your return to India, you would initially qualify as a Resident but Not Ordinarily Resident (RNOR) and subsequently become a Resident and Ordinarily Resident (ROR).

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Originally published by Livemint on Oct 13, 2026 Read the full article at livemint.com
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