Clarification on Enrollment of Overseas Citizen of India in NPS

Clarification on Enrollment of Overseas Citizen of India (OCI) in National Pension System (NPS) at par with Non-Resident Indians (NRI) – PFRDA

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016

No: PFRDA/2019/24/PDES/5

Date: 17th December 2019

Circular

Clarification – Enrollment of Overseas Citizen of India (OCI) in NPS.

1. This is in continuation to the Circular No: PFRDA/2019/19/PDES/3 dated 29th Oct, 2019 on the above subject whereby the Authority permitted Overseas Citizen of India (OCI) to enroll in National Pension System at par with Non-Resident Indians (NRI).

2. Based on the communication received from Insurance Regulatory and Development Authority of India (IRDAI), it is hereby clarified that Annuity payable by ASPs to NRIs and OCIs will be taxed at source, at rates applicable as per the DTAA (Double Taxation Avoidance Agreements) of the country where the annuitant resides.

3. Hence the intermediaries including Annuity Service Providers (ASPs) are required to display/convey to the prospective and existing subscribers that ‘Annuities payable to NRI/OCI are subject to TDS’ and ‘repatriation of the corpus, if any, will be subject to applicable laws and regulatory provisions of IRDAI/PFRDA/RBI’ in their relevant marketing materials / website(s) / brochures / communications.

Mono MG Phukon
(General Manager)

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Also check the following links related to this topic:

PFRDA permitted OCI to enroll in NPS at par with Non-Resident Indians

TDS to be deducted on annuity payable to OCIs & NRI NPS subscribers – PFRDA

Exceptional Handling measures for NRI/ OCI cases – ECHS Online application for Smart Cards