Section 158
Section 158: relief on income from a foreign retirement benefit account
Section 158 addresses a specific mismatch problem: a person who worked abroad and built up retirement savings there may find that country taxes the account only on withdrawal, while India would otherwise tax it as it accrues. This section lets the income accrued in such a "specified account" in a "notified country" be taxed in the manner and tax year that is prescribed, rather than automatically on accrual.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
The relief
The income accrued to a specified person in a specified account is taxed in such manner and in such tax year, as may be prescribed.
Key definitions
| Term | Meaning |
|---|---|
| Notified country | A country notified as such by the Central Government |
| Specified account | An account maintained in a notified country by the specified person for retirement benefits, where the income from it is taxed by that notified country at the time of withdrawal or redemption, and not on accrual basis |
| Specified person | A person resident in India who opened a specified account in a notified country while being non-resident in India and resident in that country |
Frequently asked questions
Who can use the Section 158 relief?
A "specified person" - someone resident in India who opened a retirement account in a notified country while they were non-resident in India and resident in that country.
Why does this relief exist?
Because a notified country's retirement account may tax income only on withdrawal or redemption rather than as it accrues, so this section allows the same account's income to be taxed in India in the manner and tax year prescribed, rather than by default on accrual.
Does the section itself specify the tax year or manner of taxation?
No - the section states that the income is taxed "in such manner and in such tax year, as may be prescribed", leaving the specifics to be prescribed separately.
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Talk to our team about foreign retirement account tax reliefLast updated 9 September 2026