Starting from the assessment year 2026-27, Indians holding overseas pension accounts must file their income tax returns using ITR-2 or ITR-3, as ITR-1 and ITR-4 are no longer applicable. This change affects those with accounts such as the US 401(k), UK SIPP, or Canadian RRSP. Tax experts emphasize the importance of complete disclosure of foreign pension accounts, which must be reported under Schedule FA and Schedule FSI. Failure to comply can result in a defective return or penalties of up to ₹10 lakh under the Black Money Act. Additionally, Section 89A allows taxpayers to defer Indian taxation on foreign income until withdrawal, helping to mitigate double taxation risks. Taxpayers are also advised to be cautious of common mistakes, such as not reporting dormant accounts or missing deadlines for Forms 10-EE and 67, which can lead to immediate taxation or denial of foreign tax credits. Understanding the implications of double taxation agreements (DTAA) is crucial, as they dictate how foreign pension withdrawals are taxed, with some income being taxable only in the country of origin.