Questions Regards U.S. Federal Tax Consequences of India’s Provident Fund  Schemes Under the U.S.-India Income Tax Treaty

Questions Regards U.S. Federal Tax Consequences of India’s Provident Fund Schemes Under the U.S.-India Income Tax Treaty

Tax Treaty
By Anthony Diosdi India has a national pension plan that is similar to a social security system. The normal pension age for earnings-related pension benefits from the Employees’ Pension Scheme is 58 years of age with a minimum of ten years of contribution. The pension age for the earnings-related Employees Provident Fund scheme is 55 years of age. Covered individuals belong to the organized sectors and are employed by the government, government enterprises, public and private sector enterprises, which are mandatorily covered by the Employees Provident Fund Organization (“EPFO”). Employees with 20 or more employees are covered by EPFO. The remaining 88 percent of the workforce are mainly self-employed, daily wage workers, farmers, etc and are covered by the EPFO. For this share of the Indian workforce the Public Provident…
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