New Delhi, June 14 -- NRIs who returned to India and became tax residents but continue to hold retirement savings accounts in countries such as the US, UK, Canada or Australia are eligible to defer tax on interest accruing in those accounts until the money is actually withdrawn. To avail this relief under the Income Tax Act, 2025, taxpayers are required to file Form 40.

Form 40 replaces Form 10EE, though the rules or features of the provision remain the same. It seeks to address a tax timing mismatch that can arise when a person becomes a tax resident of India while continuing to maintain retirement savings in other foreign countries.

Taxpayers must also noted that this tax relief is only available to people who have retirement savings ...