Foreign retirement account relief (India, section 158)

An option under India's Income-tax Act, 2025, section 158 and rule 74 of the Income-tax Rules, 2026 (formerly section 89A of the 1961 Act), for a resident who opened a retirement account in a notified country while a non-resident. Instead of being taxed in India on the account's income as it accrues, the person can have it taxed in the year it is withdrawn, when the foreign country taxes it. Income that accrued while the person was non-resident or not ordinarily resident is carved out; the option is made in Form 40 for all such accounts by the return due date, and it cannot be withdrawn. Which countries are notified is reported in secondary sources to include the United States; confirm with a Chartered Accountant.