India is set for strong economic growth. The Union Budget 2021-22 focused on infrastructure, healthcare, and financial reforms. The government introduced new tax benefits, investment opportunities, and digital policies. If you have a UK pension, now is the right time to invest in India through QROPS. Moving your funds to India offers better returns, tax benefits, and access to a fast-growing economy. The budget highlights major policy changes that support long-term investments.
Key Economic Policies That Support QROPS Investments
The latest budget introduced several measures to drive economic growth. Here are the most important highlights.
- India’s first-ever digital budget, modernizing economic planning.
- Vehicle scrapping policy to remove outdated vehicles, boosting auto demand.
- 64,180 crore allocated for new healthcare schemes.
- 35,000 crore dedicated to Covid-19 vaccine distribution.
- Seven mega textile investment parks planned over the next three years.
- 5.54 lakh crore allocated for capital expenditure, driving infrastructure growth.
- 1.18 lakh crore set aside for the Ministry of Roads, improving transport networks.
- 1.10 lakh crore allocated to modernize Indian railways.
- Foreign direct investment (FDI) in insurance increased from 49 percent to 74 percent.
- Deposit insurance coverage strengthened to ensure faster access to funds in stressed banks.
- Revised definition of small companies to ease compliance for businesses with capital under 2 crore and turnover under 20 crore.
- Disinvestment plans, including the LIC IPO, to be completed in 2021-22.
These policies create a stable environment for long-term investments, making QROPS pension transfers more attractive.
Tax Benefits of Investing in India
Tax reforms in the budget encourage foreign investment and pension transfers. The key tax benefits include:
- Senior citizens over 75 no longer need to file tax returns if they have only pension and interest income.
- The time limit for reopening tax assessments reduced from six years to three years, except in cases of serious tax evasion.
- A new Dispute Resolution Committee will simplify tax disputes for those with taxable income under 50 lakh.
- A faceless Income Tax Appellate Tribunal will reduce delays in tax cases.
- NRIs will get 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 remove unnecessary 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 raised from 1 crore to 5 crore.
- Employers cannot claim deductions for late employee contribution deposits.
- Startups receive a tax holiday exemption for another year.
- Reduced duties on textiles, chemicals, and other products.
- Basic customs duty (BCD) on gold and silver lowered.
- Increased customs duty on imported agricultural products, including cotton, silk, and alcohol.
These tax measures encourage NRIs and pension holders to invest in India through QROPS while reducing tax burdens.
Why Now is the Best Time
The UK economy struggles, while India’s market expands. The budget supports foreign investments, improves financial stability, and reduces regulatory hurdles. Transferring your pension to India through QROPS ensures higher returns and better financial security.
The process takes just 90 days. With expert guidance, you can select an HMRC-compliant QROPS scheme based on your financial goals. You gain access to high-growth equity markets, fixed-income instruments, and structured pension plans.
If you plan to retire in India, now is the time to act. Investing your UK pension in India secures long-term financial benefits, tax savings, and access to a stable, growing economy.
Feel free to contact us for more details.