Published 9 May 2026
Central Board of Direct Taxes Notification No. 25 of 2022 dated 4 April 2022 -- the current list of specified countries and specified accounts under section 89A; the United States 401(k) / Individual Retirement Account / Roth IRA / 403(b); the United Kingdom Self-Invested Personal Pension and Personal Pension Plan; the Canadian Registered Retirement Savings Plan; the gaps -- Singapore Central Provident Fund, Australian Superannuation, UAE End-of-Service Gratuity; and the petition route for additions
Taxpayer Brief
Section 89A applies only to specified accounts in specified countries. Notification No. 25/2022 (S.O. 1568(E)) dated 4 April 2022 notifies three countries -- the United States of America, the United Kingdom and Canada. It names countries only, not account types: an account in those countries qualifies if it meets the definition of 'specified account' in section 89A -- an account maintained in respect of the person's retirement benefits whose income is taxed by that country on withdrawal or redemption rather than on accrual. A Singapore Central Provident Fund (CPF), an Australian Superannuation Fund, a UAE End-of-Service Gratuity Fund, or a Hong Kong Mandatory Provident Fund -- all conceptually similar to retirement accounts in the notified countries -- are in countries that are not among those notified by Notification 25/2022. The Central Government can add countries by further notification. This article maps the eligibility rules, the gaps, and how countries are added.
Complexity Matrix
Feature | Complexity Level | Primary Risk |
|---|---|---|
Retirement-benefit account in the United States, the United Kingdom or Canada | Medium | Section 89A available only if the account is a 'specified account' -- income taxed in that country on withdrawal or redemption, not on accrual |
Singapore CPF / Australian Super / UAE Gratuity Fund | Very High | Not among the countries notified by Notification 25/2022; section 89A unavailable |
1. The Current Notification Universe
Notification No. 25/2022 (S.O. 1568(E), 4 April 2022, in force from its publication) notifies the United States of America, the United Kingdom of Great Britain and Northern Ireland, and Canada as 'notified countries' for section 89A. It does not list account types. Within those countries, an account is a 'specified account' if it is maintained in respect of the person's retirement benefits and its income is not taxed on accrual but is taxed by that country at the time of withdrawal or redemption (clause (b) of the Explanation to section 89A); the person must have opened it while non-resident in India and resident in that country (clause (c)). Whether a particular plan meets the definition depends on how that country taxes it.
Legal Framework: The Notification 25/2022 framework Notification No. 25/2022 (S.O. 1568(E)) dated 4 April 2022 is the notification under section 89A; it names three notified countries and no account types. Further countries can be added only by notification of the Central Government (clause (a) of the Explanation to section 89A), and an account qualifies only if it is a retirement-benefit account taxed in that country on withdrawal or redemption rather than on accrual (clause (b)). Accounts in countries that are not notified (Singapore CPF, Australian Super, etc.) remain on the accrual-basis Indian taxation -- the very pre-89A double-trap that section 89A was designed to fix. |
2. The Significant Gaps
Foreign Retirement Vehicle | Country | Reason for Gap |
|---|---|---|
Central Provident Fund (CPF) | Singapore | Singapore is not among the countries notified by Notification 25/2022 |
Superannuation Fund | Australia | Australia is not among the countries notified by Notification 25/2022 |
End-of-Service Gratuity Fund | UAE | The UAE is not among the countries notified by Notification 25/2022 |
Mandatory Provident Fund (MPF) | Hong Kong | Hong Kong is not among the countries notified by Notification 25/2022 |
Public Service Pension Scheme | Various Asian / European countries | Not among the countries notified by Notification 25/2022 |
Insurance-linked retirement vehicles in non-specified countries | Various | Not specified |
Why Singapore CPF and UAE are notable gaps Singapore is the major destination for Indian software / banking / consulting professionals; the Central Provident Fund is the standard mandatory retirement-savings vehicle. United Arab Emirates is the major destination for Indian engineering / construction / hospitality professionals; the End-of-Service Gratuity is the standard retirement payout. Both are conceptually similar to retirement accounts in the notified countries. Because neither country is among those notified by Notification 25/2022, section 89A is not available for these accounts. |
3. How Countries Are Added
Under clause (a) of the Explanation to section 89A, a 'notified country' is a country notified by the Central Government in the Official Gazette for the purposes of the section. Accounts qualify by the statutory definition in clause (b), not by notification.
4. The Workaround for Non-Specified-Country Accounts
Where the foreign retirement account is in a non-specified country (Singapore CPF, Australian Super, etc.), section 89A is unavailable. The other provisions that bear on such an account are -- (i) RNOR status -- in a year in which the returning individual is Resident but Not Ordinarily Resident under section 6(6)(a) (non-resident in nine of the ten preceding years, or in India for 729 days or less in the seven preceding years), income accruing outside India is not included in total income unless derived from a business controlled in or a profession set up in India (proviso to section 5(1)); the number of such years depends on the individual's own history, not on a fixed window; (ii) Foreign Tax Credit through Form 67 -- claim credit for the foreign-country tax on the eventual withdrawal; (iii) timing of withdrawal -- align the foreign-country withdrawal year with the Indian Resident year if Foreign Tax Credit is being relied upon; (iv) advisory note in the Income Tax Return that the foreign retirement account is being included on accrual basis (transparent disclosure as opposed to the section 89A deferred basis).
5. Practitioner Documentation Discipline
- Verify that the foreign retirement account is in a notified country (Notification 25/2022) and meets the 'specified account' definition in section 89A -- retirement-benefit account, taxed in that country on withdrawal rather than accrual, opened while non-resident in India.
- Where eligible, file Form 10-EE per HNI-02 mechanics.
- Where ineligible (Singapore CPF, Australian Super, UAE Gratuity, Hong Kong MPF), document the accrual-basis Indian tax position with supporting working.
- Schedule FA disclosure -- mandatory regardless of section 89A eligibility.
- Foreign Tax Credit through Form 67 on eventual withdrawal -- maintain timeline alignment.
6. Key Takeaways
- Notification 25/2022 (S.O. 1568(E)) dated 4 April 2022 notifies the US, the UK and Canada.
- The notification names countries, not account types; an account in those countries qualifies if it is a retirement-benefit account taxed there on withdrawal or redemption rather than on accrual (section 89A Explanation).
- Singapore CPF, Australian Superannuation, UAE Gratuity, Hong Kong MPF -- their countries are not among those notified by Notification 25/2022, so section 89A is not available for them.
Disclaimer: This article is for general information only. It does not constitute tax / legal advice. Please consult a qualified Chartered Accountant or tax practitioner for advice specific to your circumstances. The legal position is current as of FA 2024 (No. 2) / FA 2025; subsequent amendments and CBDT notifications may modify the position.