If you are a Singapore tax resident, Singapore generally does not tax your Indian income at all: IRAS says overseas income received in Singapore, including money deposited into a Singapore bank account, is not taxable (unless it comes through a Singapore partnership). India still taxes Indian income such as NRO interest, dividends, rent and capital gains, and the India-Singapore tax treaty caps India's tax on interest and dividends at 15% for most individuals. On CPF: Employment Pass holders don't contribute at all, while permanent residents who renounce PR close their CPF account and withdraw the balance.
Below: how each type of Indian income is taxed, the TDS you face and how to bring it down, what happens to CPF and SRS when you leave Singapore, and the residence rules on both sides.
Does Singapore tax your Indian income?
For most Singapore-resident Indians, no. IRAS's page on income received from overseas says that "overseas income received in Singapore, including overseas income deposited into a Singapore bank account is not taxable", and that you don't need to declare it.
The exceptions IRAS lists are narrow. Overseas income is taxable if you receive it through a partnership based in Singapore, or if it is really Singapore employment income (overseas work that is incidental to your Singapore job, or working in Singapore for a foreign employer, for example). Interest from an NRO deposit, dividends from Indian shares, rent from a flat in Pune: none of these fall into those exceptions for an individual holding them directly.
That has a practical consequence most people miss. Because Singapore doesn't tax the income, it also gives you no credit for Indian tax. Whatever India deducts is your final cost. So getting India's TDS down to the treaty rate matters more for you than for someone in the UK or US.
Are you a Singapore tax resident?
IRAS treats a foreigner as tax resident if you stayed or worked in Singapore for at least 183 days in the previous calendar year, or for three consecutive years, or across two calendar years under the straddling rule. A Singapore permanent resident who normally lives in Singapore is also resident. These rules depend on your full facts in Singapore, so check IRAS's residency page if your days are close.
What Indian TDS applies to NRIs living in Singapore?
India taxes you as a non-resident on Indian-source income. Banks, companies and fund houses deduct tax under section 393(2) of the Income-tax Act, 2025 (old section 195) at these rates for tax year 2026-27, before surcharge and 4% cess:
| Indian income | Domestic TDS for a non-resident | India-Singapore treaty limit |
|---|---|---|
| NRO interest (savings, FD) | 30% | 15% of gross interest (10% if paid on a bank's loan) |
| Dividends from Indian companies | 20% | 15% for an individual |
| Short-term gains on listed equity (section 196, old 111A) | 20% | India may tax (shares bought on or after 1 April 2017) |
| Long-term gains on listed equity above ₹1,25,000 (section 198, old 112A) | 12.5% | India may tax (shares bought on or after 1 April 2017) |
| NRE interest | Exempt for a FEMA non-resident | Not needed |
The treaty rates come from Articles 10 (dividends) and 11 (interest) of the synthesised India-Singapore agreement published by the Income Tax Department. For shares, Article 13(4B) lets India tax gains on shares of an Indian company "acquired on or after 1 April 2017". Shares bought before that date are taxable only in the country where you are resident (Article 13(4A)).
Mutual fund units are not shares of a company, so whether Article 13(4B) or the residual rule in Article 13(5) applies to them is a question the treaty text doesn't settle in so many words. If you have large gains on Indian mutual funds, have an Indian CA look at it before you file rather than assuming either answer.
To claim any treaty rate, section 159(8) of the Act requires a certificate of residence from the Singapore government plus the documents your bank or broker asks for. The TDS side, including the lower-deduction certificate, is covered in the TDS on NRI income guide.
Illustrative example: what the treaty saves
Say you have ₹4,00,000 of NRO fixed deposit interest and ₹1,00,000 of dividends in tax year 2026-27, and the payers deduct at domestic rates with 4% cess and no surcharge. I ran the numbers with a short script.
| Income | Amount | TDS deducted | Treaty limit (15%) | Excess |
|---|---|---|---|---|
| NRO interest | ₹4,00,000 | ₹1,24,800 (31.2%) | ₹60,000 | ₹64,800 |
| Dividends | ₹1,00,000 | ₹20,800 (20.8%) | ₹15,000 | ₹5,800 |
| Total | ₹5,00,000 | ₹1,45,600 | ₹75,000 | ₹70,600 |
About ₹70,600 is recoverable, but only if you give the payer your residence certificate in advance or file an Indian return claiming the treaty rate. Singapore won't credit any of it. Filing steps for Singapore residents are in the NRI ITR filing guide. If NRO interest is your main Indian income, it is also worth understanding the NRE vs NRO difference, since NRE interest is exempt in India while you are a non-resident.
What happens to CPF when you leave Singapore?
It depends on your pass, not on how long you worked.
- Employment Pass, S Pass and Work Permit holders: the CPF Board's employer guide says "CPF contributions are not allowed for foreigners" holding these passes. There is no CPF account to deal with when you leave.
- Singapore permanent residents: CPF becomes mandatory "from the day they attain SPR status". When you leave, the CPF closure process applies to people who are no longer Singapore citizens or PRs. In other words, you close the account after renouncing PR.
The CPF Board's "on leaving Singapore" page (updated 1 October 2026) sets out the rules for PRs who renounce:
- If you renounced on or after 1 April 2024, you can close the account and transfer your savings once renunciation is complete. If you don't, the account is closed automatically the month after.
- Once closed, savings stop earning normal CPF interest and earn commercial-bank-like interest only until 31 March 2027.
- Applications take about 12 weeks on average. Applying online with Singpass is fastest. Without Singpass, documents posted from abroad need certification by a Singapore Overseas Mission or notarisation and apostille.
- CPF schemes such as CPF LIFE, MediShield Life and CPF investments end on closure.
The practical lesson: download your CPF statements and start the closure while you still have Singpass access and are still in Singapore.
Is the CPF withdrawal taxed in India?
If you close the account and the money is paid into a Singapore bank account while you are still a non-resident of India, it is foreign income received abroad, which India doesn't tax for a non-resident. In your first years back you are likely to be RNOR, and foreign income stays outside Indian tax then too unless it is received in India. If you leave the withdrawal until you are a full resident (ROR), the position is less clear-cut and an Indian CA should look at it. See the RNOR guide for how long that window lasts.
What about SRS?
The Supplementary Retirement Scheme is a voluntary Singapore scheme with its own withdrawal rules. IRAS sets them out:
- At or after the statutory retirement age, "only 50% of the withdrawal is subject to tax", with no penalty.
- Early withdrawals "are fully subject to tax and attract a 5% penalty".
- Foreigners get a concession on a one-time full withdrawal: 50% taxable and no penalty, if you were neither a citizen nor a PR for a continuous 10 years before the withdrawal and kept the account for at least 10 years from your first contribution.
If you are leaving before you meet the 10-year conditions, run the numbers on withdrawing now with the penalty versus leaving the account in place until retirement age. That is a trade-off, and it depends on your Singapore tax position in the year you withdraw.
India's residence rules for Singapore-based Indians
The deemed resident rule in section 6(7) of the Income-tax Act, 2025 applies only to citizens "not liable to tax in any other country". Singapore has a personal income tax, so a Singapore tax resident normally falls outside it (compare the UAE case, where there is none). The 120-day visit rule still applies if your Indian income, excluding foreign income, is above ₹15 lakh. Check your own days with the residential status calculator.
Checklist for Singapore-resident Indians
| Task | When |
|---|---|
| Get an IRAS certificate of residence and send it to Indian banks and brokers | Start of each Indian tax year |
| Check NRO interest and dividend TDS against the 15% treaty cap | Each quarter, from your annual tax statement on the e-filing portal |
| File an Indian return to reclaim excess TDS | By the return due date |
| Note purchase dates of Indian shares (before or after 1 April 2017) | Before selling |
| If PR: plan renunciation and CPF closure while you still have Singpass | Before leaving |
| Check SRS 10-year conditions before withdrawing | Before leaving |
| Take CPF and SRS money into a Singapore account, then remit | While still non-resident in India |
Common mistakes
- Assuming Singapore will credit Indian TDS. It doesn't tax the income, so there is nothing to credit against. Claim the treaty rate in India.
- Letting banks deduct 31.2% year after year. On a few lakh of NRO interest that is tens of thousands of rupees lost.
- Thinking an EP holder has CPF to withdraw. Foreigners on work passes can't contribute.
- Leaving CPF closure until after the move. Overseas applications need certified documents, and interest after closure runs only until 31 March 2027.
- Ignoring the 2017 share cut-off. Gains on Indian shares bought from 1 April 2017 are taxable in India.
- Treating Indian income below ₹15 lakh as tax-free. The ₹15 lakh figure only matters for residence tests. Indian tax on NRO interest and gains applies from the first rupee, subject to the normal slab and exemption rules.
Before you move back for good, the moving back checklist covers bank accounts, insurance and investments in order.
