Canada, UK & Northern Ireland and USA notified countries for Foreign Retirement Benefits Accounts: CBDT

Notification no. 25/2022, dated 04-04-2022

Section 89A provides relief to residents who have income from foreign retirement benefits accounts. It says that the income of a specified person from the specified account shall be taxed in the manner and in the year as prescribed by the Central Government. A specified person means a resident person who opened a specified account in a notified country while being a non-resident and resident in that country.
The Central Board of Direct Taxes (CBDT) has notified the following countries as ‘notified country’ for the purpose of section 89A:

a) Canada,
b) The United Kingdom of Great Britain and Northern Ireland, and
c) United States of America

Accordingly, the resident person, who had opened foreign retirement benefits accounts in the above three notified countries while being resident in that country, shall be eligible to claim the relief provided by section 89A. Section 89A read with Rule 21AAA, provides that if a specified person has accrued any income in the retirement benefits account, then the same shall be included in his total income of the previous year, in which such income is taxed in the country wherein such account is maintained.

However, to exercise this option, the specified person is required to e-file Form No. 10-EE on or before furnishing return of income.

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