HC Deb 08 March 1951 vol 485 cc91-2W
109. Mr. Low

asked the Secretary of State for Commonwealth Relations what pensions paid by the Government of India and the Government of Pakistan, respectively, to former servants of the Government of undivided India now resident in the United Kingdom are subject to Indian or Pakistan income tax; and to what extent.

Mr. Gordon-Walker

Pensions paid by the Government of India include pensions both to former servants of the Government of undivided India and former servants of the Provinces which are now part of India except Bengal and the Punjab. The Government of India have given notice that from the beginning of this month recipients of these pensions residing outside India will be liable to Indian income tax. The incidence of the Indian income tax and the administrative arrangements for its collection from persons resident in the United Kingdom are not yet know, but I will communicate with the hon. Member when full information is received from the Government of India.

Pakistan pays pensions to former servants of the Provinces which are now part of Pakistan and also former servants of Bengal and the Punjab. Person receiving these pensions and living outside India are not liable to Pakistan income tax.