Taxation of retirement benefits: option to include foreign retirement account income when taxed on withdrawal, subject to Form 10-EE. Rule 21AAA permits a specified person to elect to include income from retirement benefit accounts in a notified foreign country in the previous year when such income is taxed on withdrawal or redemption in that country. The election must be made for all specified accounts via electronic Form No. 10-EE by the return due date, applies to subsequent years and is generally irrevocable. Amounts already taxed in earlier years or not taxable in India when accrued (due to non-resident status or DTAA) are excluded, with foreign tax on such excluded amounts ignored for foreign tax credit under rule 128. Becoming non-resident causes the earlier election to be treated as never exercised from the relevant previous year.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of retirement benefits: option to include foreign retirement account income when taxed on withdrawal, subject to Form 10-EE.
Rule 21AAA permits a specified person to elect to include income from retirement benefit accounts in a notified foreign country in the previous year when such income is taxed on withdrawal or redemption in that country. The election must be made for all specified accounts via electronic Form No. 10-EE by the return due date, applies to subsequent years and is generally irrevocable. Amounts already taxed in earlier years or not taxable in India when accrued (due to non-resident status or DTAA) are excluded, with foreign tax on such excluded amounts ignored for foreign tax credit under rule 128. Becoming non-resident causes the earlier election to be treated as never exercised from the relevant previous year.
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