Tax relief on USA Retirement Benefit Account - u/s 89A r.w.s rule 21AAA

[PRIYAM KHAMBHATA]

Respected Sir

My client is citizen of USA since long, but his residential status became Resident of India, from AY 2019-20. He is maintaining Foreign Retirement Benefit Account - 401K account, IRA Account. As per the new provisions inserted from 01.04.2022 in respect of Tax Relief u/s. 89A read with rule 21AAA, he has to exercise option, foreign income reporting at the time of receipt, not at the time of accrued and to file Form 10EE online. But, my client has missed out file Form 10EE from AY 2023-24 and not to report foreign income on such foreign retirement benefit accounts in the Return of Income filed for AY 2022-23 to 2024-25.

Now, what are the consequences arise, if he file Form 10EE as per the rule 21AAA for the AY 2025-26, or otherwise he will not file Form 10EE and Foreign Income will report in ITR when he receives.

Should he report foreign retirement accounts in Foreign Asset Disclosure - Schedule FA in ITR ?

Please guide me.

Thanks

AI Summary

Tax relief election under section 89A requires Form 10EE filing to fix receipt timing and disclosure of foreign retirement accounts. Resident taxpayer with US 401(k)/IRA must elect reporting under tax relief provisions by filing Form 10EE online to report foreign retirement receipts at time of receipt; missed Form 10EE filings raise questions about late election for later years, consequences for earlier unreported receipts, and whether such foreign retirement accounts and their receipts must be disclosed in Schedule FA of the ITR.