@confusedabd , the reason for my questions on details of the situation is because of article 19 --- to wit:
2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political
subdivision or a local authority thereof to an individual in respect of services rendered to that
state or subdivision or authority shall be taxable only in that State.
(b) However, such pension shall be taxable only in the other Contracting State if the
individual is a resident of, and a national of, that State.
However , the technical explanation of the treaty draws attention to the use of "and " in the 2(b) above i.e. one must be both a resident and a national of US for the govt. pension from India to be taxed by the USA ( double taxation ). -- to wit :
Paragraph 2 deals with the taxation of a pension paid by, or out of funds created by, a
Contracting State or a political subdivision or a local authority thereof to an individual in respect
of services rendered to that state or subdivision or authority. Subparagraph (a) provides that such
a pension shall be taxable only in that State. Subparagraph (b) provides an exception under
which such a pension shall be taxable only in the other Contracting State if the individual is a
resident of, and a national of, that other State. Pensions paid to retired civilian and military
employees of a government of either Contracting State are intended to be covered under
paragraph 2. Social security and similar benefits paid by a Contracting State in respect of
services rendered to that State or a subdivision or authority are also intended to be covered.
Paragraphs 1 and 2 are similar to paragraphs 1 and 2 of Article 19 (Government Service)
of the OECD and the U.N. Model Treaties. These paragraphs differ from Article 19 of the U.S.
Model under which such remuneration, including a pension, is taxable only in the Contracting
State that pays it
Therefore please answer my questions fully.
Note that if you are uncomfortable in providing details in this public forum, you can always PM me -- just no personally identifiable information, please.
Namaste ji
pk
