March 23, 2026

Submitted By: Shweta Verma

Form for exercise of option for claiming relief under section 158 of the Income-tax Act’ 2025

Form 40 is the prescribed form for exercise of option to claim the tax relief under section 158 of the Income-tax Act’ 2025 (“ITA 2025”) by a person resident in India, in respect of income from a retirement benefit account, maintained in a notified country. The countries notified for this purpose of this relief are USA, UK, Canada, and Australia, at present. On exercise of option, the Indian resident gets the relief from taxation of income on accrual basis in India, in case such income from retirement benefit account is taxed at the time of withdrawal or redemption in the notified country. In other words, filing of this Form allows for the deferral of taxation until the income is withdrawn or redeemed in the foreign country.