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In a significant move to provide better facilities to taxpayers and encourage voluntary tax compliance, the Central Board of Direct Taxes (CBDT) has introduced a feature on the income tax e-filing portal to display information regarding foreign assets and foreign income in the Annual Information Statement (AIS) of eligible taxpayers. This information is received under the Automatic Exchange of Information (AEOI) framework.

A senior official stated on Thursday that this facility has been launched not to scrutinize taxpayers, but to assist them in correctly complying with tax regulations.

**Partnership with over 100 countries**
India has entered into several international agreements regarding the exchange of financial information with more than 100 partner countries worldwide. Under these agreements, India receives information annually concerning the foreign financial assets and income of its tax residents.

The official explained that under the AEOI framework, information pertaining to the previous calendar year begins to arrive in September each year. This data may include details regarding foreign bank accounts, custodial accounts, certain financial investments, interest, dividends, and other specified financial income shared by partner countries in accordance with international standards.

**Information available for these years**
Currently, information pertaining to the calendar years 2022, 2023, and 2024 has been displayed in the AIS. Information for the calendar year 2025 will be made available on the portal after it is received in September or October 2026.

The CBDT has clarified that the information regarding foreign assets and income displayed in the AIS is limited to what India has received from partner countries. It should not be considered a comprehensive record of all foreign assets and income held by a taxpayer. Therefore, it is essential for taxpayers to provide accurate and complete details of all their foreign assets and income from foreign sources in 'Schedule FA' and 'Schedule FSI' of their income tax returns, regardless of whether or not this information appears in the AIS (Annual Information Statement).

Under this new facility, taxpayers can securely log in to their e-filing accounts to easily view information regarding their foreign assets and foreign income. This will facilitate the entry of accurate information in 'Schedule FA' and 'Schedule FSI' while filing income tax returns.

**How ​​to view foreign asset details**
To view information related to foreign assets, taxpayers must log in to the Income Tax e-filing portal. From there, they need to navigate to the AIS section and open the Compliance Portal. After clicking on the 'Reports' option, they should select 'Foreign Assets Information'. Finally, by selecting the relevant calendar year and downloading the PDF, the complete information can be viewed.

The CBDT stated that this facility has been launched entirely in the interest of taxpayers; its sole objective is to provide them with international information available to the department, enabling them to file tax returns accurately and transparently. It is not intended to serve as a means for any kind of investigation or inquiry.

**Messages being sent**
As part of this initiative, SMS and emails are also being sent to taxpayers. These messages inform them about the facility and remind them that if they hold foreign assets or earn foreign income, they must provide accurate details while filing their income tax return for the Assessment Year 2026-27. Taxpayers can also seek assistance from 'Kar Sathi', an AI-based virtual assistant available on the e-filing portal.

This assistant will help in selecting the correct return form, reporting foreign assets and income, and answering other tax-related queries. The CBDT states that this new facility will provide taxpayers with necessary information in a timely manner, thereby reducing inadvertent reporting errors and making income tax returns...

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