What is QROPS - India?
QROPS is a pension transfer arrangement for NRIs holding their pension fund in the United Kingdom (UK) and who wish to move their pension to India.Â
In India, QROPS allows you to transfer your UK pensions to Indian pension schemes that meet certain criteria set by HM Revenue and Customs (HMRC) in the UK.Â
This enables the NRIs who have worked in the UK to consolidate their pensions in India, offering potential tax benefits and greater flexibility in managing retirement funds.
Overseas Transfer Charge for QROPS
Since 9 March 2017, HM Revenue and Customs (HMRC) has applied a 25% Overseas Transfer Charge (OTC) to certain pension transfers via QROPS. The OTC is levied based on where you live, where the QROPS is based and your Overseas Transfer Allowance (OTA). The OTA is a limit on the amount of tax-free UK pension savings you can transfer into a QROPS, currently set at £1,073,100. You are exempt from OTC if during transfer:
- You are a resident in the same country in which your pension scheme is being transferred and you continue being a resident in that country for the following five tax years.
- The transfer does not exceed your available Overseas Transfer Allowance.
- It means if a UK-based NRI has already relocated to India and is transferring their UK pension into a QROPS in India with a transferred amount less than the OTA, is exempt from the OTC.
- In case the person satisfies the residency condition but their transferred amount crosses above the OTA, they will be charged with a 25% tax on the excess amount only.
- In case the person fails the residency test, they will be subjected to a stringent 25% Overseas Transfer Charge on the whole amount being transferred.
What if I Move to Another Country Within 5 Years of Transfer?
If you move to a country other than where your QROPS is based within the 5 years of your pension scheme transfer to a QROPS, you need to fill in Form APSS241 and give it to your scheme administrator. You will be charged 25% tax on your transfer.
Other Benefits of QROPS in India
The key benefits of investing in QROPS scheme in India are listed below:
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Tax Benefits: QROPS schemes offer tax advantages for NRIs leaving the UK and transferring their pensions to India.
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Investment Flexibility: These schemes provide a wide range of investment options tailored to individual preferences and risk profiles of the NRI.
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Currency Options: NRI pension holders can choose to receive benefits in various currencies, which enhances flexibility for NRI retirees.
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Regulation and Oversight: QROPS schemes in India are regulated and overseen by Indian financial authorities to ensure compliance with local laws.
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Portability: Pension funds can be easily transferred between QROPS schemes or jurisdictions, providing flexibility for retirees.
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Retirement Options: In India, various retirement plans and annuity plans are available for NRIs, which include lump-sum withdrawals or regular income payments.
Best QROPS Scheme in India in 2026
Here are the best QROPS in India in 2026 for NRIs in the UK:
- ICICI Pru Easy Retirement SP
- Kotak Assured Pension
- HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan
- Aditya Birla Sun Life Insurance Guaranteed Annuity Plus
- SBI Life Smart Annuity Plus
Eligibility Criteria for NRIs Choosing QROPS
The eligibility criteria for an NRI transferring their pension scheme to India via QROPS are as follows:
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Age: Between 18 and 75 years old.
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Pension Fund: Hold an active UK pension fund.
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Residence:
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No Recent Withdrawals: No withdrawals from the UK pension fund in the past 5 years.
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UK Residency Status:
How to Transfer Your UK Pension in a QROPS in India?
Step 1: Choose a QROPS Provider:
Research and select an HMRC-approved QROPS provider in India aligned with your investment goals.
Step 2: Inform your UK Pension Provider:
Notify your UK pension provider about your intent to transfer funds to a QROPS. They'll provide the necessary forms and information.
Step 3: Complete Transfer Forms:
Fill out required forms from both your UK pension provider and chosen QROPS provider, including CETV, transfer payout, lifetime allowance forms, and KYC documents.
Step 4: Submit Forms and Documents:
Submit completed forms and all necessary documents to both providers.
Step 5: HMRC Approval:
Obtain approval from HM Revenue & Customs (HMRC) in the UK, typically facilitated by your financial advisor.
Step 6: Fund Transfer:
Upon approval, your UK pension fund will be transferred to the chosen QROPS provider in India.
Documents Required to Transfer UK Pension to India
Following are the documents required for UK Pension Transfer to India via QROPS:
| Category |
Document |
Description |
| Personal Information |
Passport |
Current passport with photo and signature page |
| PAN Card (India) |
Permanent Account Number card for tax purposes in India |
| Proof of Address in India |
Utility bill, bank statement, or other document with your Indian address |
| Pension Information |
UK Pension Scheme Statements |
Recent statements showing pension details and contributions |
| Transfer Request Form |
Provided by your UK pension provider |
| Tax Residence Certificate (India) |
Issued by Indian tax authorities confirming your residency |
| Tax Residence Certificate (UK) |
Issued by UK tax authorities confirming your non-residency |
| QROPS Transfer Approval (Optional) |
From HMRC if transferring to a Qualifying Recognized Overseas Pension Scheme (QROPS) in India |
| Financial Information |
Bank Details (India) |
Bank account information for receiving transferred funds |
| Foreign Account Tax Compliance Act (FATCA) Form (Optional) |
Required by some US-linked pension providers’ |
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