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Income type guide

EPF/NPS Withdrawal TDS

Withdraw ₹25 lakh of EPF before 5 years of service as NRI: 10% TDS under Section 192A = ₹2.5 lakh gone at withdrawal (20% if PAN absent). Time the withdrawal past the 5-year threshold and the principal turns tax-free; the employer contribution portion stays taxable but at slab rate. DTAA adds a further relief on the taxable slice.

For Gulf NRI on EPF/NPS

Default at-source TDS in India: 30%. Treaty rate (after Form 10F / Form 41 + TRC): 0%. Saving = 30 percentage points.

Article 22, resident country only

How it works

What happens to your epf/nps as an

Under Rule 9 of Part A of the Fourth Schedule, EPF withdrawn before 5 continuous years of service is fully taxable. Section 192A governs the TDS at withdrawal: 10% if PAN is provided, 20% (maximum marginal rate) without PAN. After 5 years the employee contribution becomes tax-free; employer + interest portions still face slab-rate tax. NPS Tier I: 60% tax-free lump sum at 60, 40% annuity mandatory. DTAA Article on Pensions governs country-specific relief.

10%

Default rate

Varies

rate by country

Gulf NRI — what changes for you

Country-specific overlay on EPF/NPS

Indian tax IS your only tax

UAE has no personal income tax on individual savings interest, dividends, or capital gains. So the India-side rate (after DTAA reduction) is the FULL tax bite — no further drag in your country. NRE / FCNR exempt-in-India income flows through tax-free both sides. NRO / dividend income gets reduced via DTAA where treaty caps apply (UAE 12.5% on interest; Saudi 5% on dividends; etc.), and that reduced rate is your only cost.

EPF/NPS rates by country

What each country's treaty says

Sorted by savings potential. 29 countries with a DTAA benefit, 2 with the same rate.

UAE

Article 22, resident country only

Default → DTAA

30%0%

Save 30%

US

Article 22 — Other Income generally taxable in residence state only.

Default → DTAA

30%0%

Save 30%

UK

Article 23

Default → DTAA

30%0%

Save 30%

Singapore

Article 23, resident country (Singapore) only

Default → DTAA

30%0%

Save 30%

Canada

Article 22 — Other Income generally taxable in residence state only.

Default → DTAA

30%0%

Save 30%

Australia

Article 23, resident country (Australia)

Default → DTAA

30%0%

Save 30%

Oman

Article 22, resident country only

Default → DTAA

30%0%

Save 30%

Saudi Arabia

Article 22, resident country only

Default → DTAA

30%0%

Save 30%

Qatar

Article 22, resident country only

Default → DTAA

30%0%

Save 30%

Germany

Article 22, taxable only in residence state

Default → DTAA

30%0%

Save 30%

Netherlands

Article 23, taxable only in residence state. Article 22 (Capital) and the Protocol IV(2) MFN clause on dividends/CG were narrowed by AO v Nestlé SA (2023).

Default → DTAA

30%0%

Save 30%

Kuwait

Article 22, resident country only

Default → DTAA

30%0%

Save 30%

France

Article 23, taxable only in residence state

Default → DTAA

30%0%

Save 30%

Ireland

Article 22, taxable only in residence state

Default → DTAA

30%0%

Save 30%

Switzerland

Article 22, taxable only in residence state

Default → DTAA

30%0%

Save 30%

Malaysia

Article 22

Default → DTAA

30%0%

Save 30%

Japan

Article 22, resident country (Japan)

Default → DTAA

30%0%

Save 30%

South Korea

Article 22, resident country (Korea)

Default → DTAA

30%0%

Save 30%

Hong Kong

Article 21, resident country (HK)

Default → DTAA

30%0%

Save 30%

New Zealand

Article 22, resident country (NZ)

Default → DTAA

30%0%

Save 30%

South Africa

Article 22

Default → DTAA

30%0%

Save 30%

Kenya

Article 22

Default → DTAA

30%0%

Save 30%

Sweden

Article 22, taxable only in residence state

Default → DTAA

30%0%

Save 30%

Norway

Article 22, taxable only in residence state

Default → DTAA

30%0%

Save 30%

Denmark

Article 22, taxable only in residence state

Default → DTAA

30%0%

Save 30%

Thailand

Article 22, resident country (Thailand)

Default → DTAA

30%0%

Save 30%

Indonesia

Article 22, resident country (Indonesia)

Default → DTAA

30%0%

Save 30%

Philippines

Article 22, resident country (Philippines)

Default → DTAA

30%0%

Save 30%

Mauritius

Article 22. Residual income taxable only in residence state (Mauritius).

Default → DTAA

30%0%

Save 30%

Same rate under DTAA (2 countries)

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