| RELIEF UNDER SECTION 158 CALCULATOR |
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Section 89A of ITA 1961 / ITA 2025 | Foreign Retirement Accounts | Notified Countries | DTAA Relief
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About Section 89A: Introduced by Finance Act, 2021 w.e.f. AY 2022-23. Provides relief to Resident Indians (who were earlier NRIs) from double taxation on income accruing in foreign retirement / provident accounts maintained in notified countries (USA, Canada, UK — Notification No. 05/2022 dt. 04.04.2022).
Benefit: Income from such accounts shall be taxable in India in the year in which it is taxable in the country where the account is maintained (typically on withdrawal/distribution), thus deferring Indian taxation till then.
Examples: USA: 401(k), Traditional IRA, Roth IRA (contributions phase) | UK: Individual Savings Account (ISA) | Canada: Registered Retirement Savings Plan (RRSP)
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⚠ Mandatory: File Form 40 online on Income Tax Portal before filing ITR to select option under Section 158 relief read with Rule 74. Option once exercised will apply to all subsequent tax years and cannot be subsequently withdrawn.
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| ► ASSESSEE DETAILS |
| Assessee |
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| Residential Status (India) |
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| Country where Retirement Account is Maintained |
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| Type of Retirement Account |
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| Tax Year |
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| ► FOREIGN RETIREMENT ACCOUNT — INCOME DETAILS (In INR equivalent) |
| Opening Balance of Foreign Retirement Account (INR equivalent) (₹) |
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Total Income Accrued in Foreign Account during the Year (INR equivalent) (₹)
Interest, dividends, capital appreciation credited to the account |
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Amount Actually Withdrawn / Distributed this Year (INR equivalent) (₹)
Under Sec 89A, only withdrawal amount becomes taxable in India in the year of receipt in foreign country |
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Tax Paid in Foreign Country on the Above (INR equivalent) (₹)
For DTAA credit claim |
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Applicable DTAA Rate (%) between India and the Country
E.g., India-USA DTAA: generally 25% on pension / retirement income |
% |
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