NPS annuity tax rules for Indian expats

I had applied to secure a Portugal Golden Visa with my children's education in mind. I was granted one recently and now live in Portugal, where I have my own business. Since I'm still an Indian citizen, how will my National Pension System (NPS) annuity be taxed in India? Will it change if I apply for and obtain Portuguese citizenship in the future?

- Harshal Bhuta

-Name withheld on request

You have not mentioned your period of stay, but assuming you have become a non-resident Indian and a resident of Portugal as you run a business there. I also assume that you do not spend more than the specified threshold period (120 days/182 days) on your visits to India, and therefore do not become a resident under Indian income tax law.

I am also assuming that you are liable to pay tax in Portugal as a resident, and you qualify as a tax resident of the country under India-Portugal Double Taxation Avoidance Agreement (DTAA).