If you are an Indian resident this year and previously worked as a salaried employee in the United States, Canada, United Kingdom or any other country notified by the Income Tax Department, and you have a pension account like 401k in the US or something similar for other countries, then the Indian Income Tax Act, 2025 offers you some relief.
Section 158 of the Indian Income-tax Act, 2025 provides relief from taxes on income from retirement benefit accounts held in a notified country like the UK, USA, or Canada, among others. Section 158 (earlier Section 89A) was created to fix the mismatch issues arising from timing of taxation of income accruing in foreign retirement accounts, such as the U.S. 401(k) and other specified overseas pension schemes.
