Form 10EE is the electronic declaration a resident of India files with the Income Tax Department to elect the tax deferral under Section 89A of the Income Tax Act, 1961. Filing it lets you postpone Indian income tax on gains accruing inside a retirement account held in the United States, Canada, or the United Kingdom until the country where the account sits actually taxes the money, which is normally at withdrawal. The form applies from Assessment Year 2022-23 onward and is available only to residents holding qualifying foreign retirement accounts.
What Section 89A Relief Gives You
India taxes residents on worldwide income as it accrues. A U.S. 401(k) or IRA, a U.K. pension, or a Canadian retirement plan, on the other hand, typically grows without local tax until the holder takes a distribution. Without relief, a returning NRI would owe Indian tax every year on internal growth they can’t yet access.
Section 89A closes that gap. Once you file Form 10EE, income accruing inside a qualifying foreign retirement account is left out of your Indian taxable income each year and is brought to tax in India only in the year the foreign country taxes it. The Central Government has notified three countries for this purpose: the United States, Canada, and the United Kingdom, including Northern Ireland.1Income Tax Department. Income Tax Act Section 89A
Who Qualifies to File
All three conditions must be met:
- You are currently a resident of India under Indian tax law.
- You opened the account while you were a non-resident of India and a resident of the country where the account is maintained.
- The account is held in the United States, Canada, or the United Kingdom. No other countries are currently notified.1Income Tax Department. Income Tax Act Section 89A
The statute defines a “specified account” as one maintained in a notified country for retirement benefits, where the foreign country taxes the income at withdrawal or redemption rather than on accrual. That description fits traditional U.S. 401(k) plans and traditional IRAs, along with comparable retirement vehicles in Canada and the U.K.
What You Need Before You File
Rule 21AAA requires specific information for each specified account. Gather these documents first:
- The balance in each account as of the last day of the financial year immediately before the year of filing.
- Evidence that the account income has been or will be taxed in the foreign country, along with the relevant provisions of that country’s tax law.
- A reconciliation statement if any income from the account was already taxed in India on an accrual basis in earlier years, matching those amounts to your prior tax computations.
For U.S. accounts, year-end custodian statements from the 401(k) or IRA provider and any Form 1099-R for distributions serve as useful supporting records.
How to File Form 10EE
Form 10EE is submitted through the Income Tax Department’s e-filing portal.2Income Tax Department. Form 10EE The steps track the standard workflow for statutory forms:
- Log in at incometax.gov.in with your PAN and password.
- Go to e-File, then Income Tax Forms, and select Form 10EE for the relevant assessment year.
- Enter the account balance, foreign tax evidence, and any reconciliation with prior Indian filings.
- Verify the form electronically, using either an Electronic Verification Code (through Aadhaar-linked mobile or a pre-validated bank account) or a Digital Signature Certificate.
The portal issues an acknowledgment number on successful verification. Save it. That receipt is your proof that the Section 89A option was exercised for that assessment year.
When Form 10EE Is Due
File Form 10EE on or before the due date for your income tax return for that financial year. For most individual taxpayers that is the Section 139(1) deadline, typically July 31 of the relevant assessment year. Filing after the due date can cost you the deferral, leaving the accrued income taxable in the year it arose.1Income Tax Department. Income Tax Act Section 89A
What to Weigh Before Filing
The election has consequences that make it worth pausing over.
It covers every qualifying account you hold in the notified countries. You cannot pick one account and leave another out.
It is irrevocable. Once accepted by the portal, the deferral applies to all subsequent assessment years and cannot be undone.
Foreign taxes paid on the deferred income cannot be claimed as a foreign tax credit under Rule 128. Income already taxed in India in earlier years on accrual is not taxed again, and income that was exempt during years you were non-resident or not ordinarily resident stays exempt.
The Non-Resident Clawback
If you file Form 10EE and later become non-resident in India again, the election is treated as if it was never made. All income that accrued during the deferral period becomes taxable in the year you resume non-resident status, and the resulting tax must be paid before you file your return for that year.
The deferral therefore works cleanly for people who have permanently returned to India. If your future residency is uncertain, the irrevocable election carries the risk of a large, concentrated tax bill in the year you leave. Think through that scenario before you file.