India continues to grow as a global financial hub. The Union Budget 2021-22 introduced policies to boost infrastructure, healthcare, and foreign investments. New tax benefits and financial reforms make QROPS investments in India more attractive than ever.
If you have a UK pension, now is the time to move it. The budget supports strong economic growth and offers better returns. Transferring your pension to India ensures financial stability, tax savings, and access to a booming market.
How the Union Budget Supports QROPS Investments
The government has prioritized economic expansion, making India a strong investment destination. Here are the budget’s key highlights.
- India’s first digital budget, streamlining financial planning.
- Vehicle scrapping policy to replace outdated vehicles and boost auto demand.
- 64,180 crore allocated for new healthcare schemes.
- 35,000 crore for Covid-19 vaccine rollout.
- Seven mega textile investment parks planned over three years.
- 5.54 lakh crore set aside for capital expenditure, strengthening infrastructure.
- 1.18 lakh crore allocated to the Ministry of Roads for better connectivity.
- 1.10 lakh crore to modernize Indian railways.
- Foreign direct investment (FDI) in insurance increased from 49 percent to 74 percent.
- Deposit insurance reforms ensure faster access to funds in stressed banks.
- Revised definition of small companies eases compliance for businesses with capital under 2 crore and turnover under 20 crore.
- LIC IPO and other disinvestment plans to be completed within the year.
With these policies, QROPS investments in India offer stronger growth potential.
Tax Benefits of QROPS Investments in India
The latest tax reforms encourage foreign investments, reduce tax burdens, and create financial stability. Here are the key tax benefits.
- Senior citizens over 75 with only pension and interest income are exempt from filing tax returns.
- The time limit for reopening tax assessments reduced from six years to three, except in cases of serious tax evasion.
- A new Dispute Resolution Committee simplifies tax disputes for those earning under 50 lakh.
- The faceless Income Tax Appellate Tribunal streamlines tax appeals.
- NRIs receive relief from double taxation.
- The tax audit limit for businesses with 95 percent digital payments increased from 5 crore to 10 crore.
- Advance tax liability on dividends adjusted to ease financial burdens.
- Tax holidays extended for aircraft leasing companies.
- Prefilled tax returns now include salary, tax payments, TDS, capital gains, and dividend income.
- Compliance limits for small charitable trusts increased from 1 crore to 5 crore.
- Employers cannot claim deductions for late employee contribution deposits.
- Startups benefit from a one-year extension on tax holiday exemptions.
- Lower duties on textiles, chemicals, and other industries support business growth.
- Reduced basic customs duty (BCD) on gold and silver.
- Increased customs duty on imported agricultural goods like cotton, silk, and alcohol.
These tax changes make QROPS investments in India even more beneficial.
Why Now is the Right Time
The UK economy struggles with uncertainty, while India’s financial sector strengthens. The budget supports investment growth and tax efficiency. Transferring your pension through QROPS investments ensures better financial returns and long-term security.
The process takes only 90 days. With professional assistance, you can select an HMRC-compliant scheme suited to your financial goals. You can invest in equity markets, fixed-income instruments, or structured pension plans.
If you plan to retire in India, now is the best time to move your pension. QROPS investments provide tax-free transfers, higher returns, and access to a thriving economy.
Feel free to contact us for more details.