I have a PF [retirement] account through my employment in India, before moving to the US in Aug 2012. However, there were no fresh contributions made to this accounts during my residency in the US.

Also, even though I moved to the US through an international transfer within the same company. Technically as the India based branch was an independent entity and my move to the US based headquarters; I resigned at the Indian Entity and Joined the US Entity.

As these are earnings before my becoming a US Citizen; I believe the funds in this PF account shouldn't be taxable in the US. Can someone confirm the below;

  1. US Tax point of view:
    • If the Original Contributions till August 2012 are tax exempt
    • Interest accrued till August 2012 is tax exempt
    • Interest from August 2012 till withdrawal is tax exempt
  2. From India Tax Point of View: Is the interest accrued tax free when withdrawm

Note: PF [Provident Fund] is a defined contribution [with some aspect of defined benefits] scheme run by Government of India. Investments by Individuals are eligible for tax benefits and contributions are matched by Company to the extent of 12%. The scheme accrues interest defined by Government during the contributions and after the contributions.

  • From India Tax point of view the interest is not taxable. You can file for withdrawal and move the funds into NRO account. From there you would need to refer to Liberalized Remittance Scheme to move the funds to US. – Dheer Feb 4 '19 at 8:09
  • Not sure why the original question got edited with so many grammatical and semantic errors. – anamik anamika Feb 12 '19 at 6:26
  • I edit as it was not readable. If you believe it is incorrect, please feel free to edit and correct the errors. Thanks. – Dheer Feb 12 '19 at 15:09

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