Returning Indians with US 401(k) or IRA must file ITR-2
If you're returning to India after working abroad and have a US 401(k), IRA, or any overseas retirement account, the Income Tax Department says you can't use the simple ITR-1 form anymore.
For Assessment Year 2026-27, you'll need to file ITR-2 (provided you do not have business or professional income) if you hold foreign assets, earn income from outside India, or even just have signing authority in an overseas account.
Report schedules FA FSI TR
ITR-2 is for folks who don't have business income but do have foreign assets or income.
You'll need to report your overseas accounts (Schedule FA), any foreign earnings (Schedule FSI), and claim tax relief if eligible (Schedule TR).
If you're claiming Foreign Tax Credit, don't forget Form 67: it's required.
Picking the right form is super important; getting it wrong can lead to hassles or penalties later on.