Section 89A of Income Tax Act for AY 2023-24

Section 89A of Income Tax Act inserted by Finance Act 2022. Relief from taxation in income from retirement benefit account maintained in a notified country.

Amended and updated notes on section 89A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to relief from taxation in income from retirement benefit account maintained in a notified country.

Chapter VIII (Sections 87 to 89A) of the Income Tax Act 1961 deals with the provisions related to rebates and reliefs. Section 89A of IT Act 1961-2023 provides for relief from taxation in income from retirement benefit account maintained in a notified country.

Recently, we have discussed in detail section 89 (Relief when salary, etc., is paid in arrears or in advance) of IT Act 1961. Today, we learn the provisions of section 89A of Income-tax Act 1961. The amended provision of section 89A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 89A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section 89A: Relief from taxation in income from retirement benefit account maintained in a notified country

Where a specified person has income accrued in a specified account, such income shall be taxed in such manner and in such year as may be prescribed.

Explanation: For the purposes of this section,––

(a) “specified person” means 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;

(b) “specified account” means an account maintained in a notified country by the specified person in respect of his retirement benefits and the income from such account is not taxable on accrual basis but is taxed by such country at the time of withdrawal or redemption;

(c) “notified country” means a country as may be notified by the Central Government in the Official Gazette for the purposes of this section.


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