Income Tax Alert: Government monitoring foreign-sourced income; full details now visible in AIS

CBDT Update: The CBDT has launched a new feature on the income tax e-filing portal, enabling taxpayers to easily view details of foreign assets and income within the AIS and file their ITRs accurately.

Income Tax Return: If you hold assets abroad or earn any income from overseas, this information regarding income tax is crucial for you. You no longer need to visit multiple sources to access details about your foreign assets and income. The Central Board of Direct Taxes (CBDT) has introduced a new feature on the income tax e-filing portal for the convenience of taxpayers.

Under this initiative, taxpayers can now easily view information related to their foreign assets and income in their Annual Information Statement (AIS). The move aims to assist taxpayers in filing their Income Tax Returns (ITR) correctly. The department states that the objective of this facility is not to keep taxpayers under surveillance, but to simplify tax compliance.

Financial information received from over 100 countries

India has entered into agreements with more than 100 countries under the Automatic Exchange of Information (AEOI) framework. Through this mechanism, other countries provide information regarding the foreign assets and income of Indian tax residents.

This information may include details such as foreign bank accounts, investments, interest, dividends, and other financial transactions. Currently, foreign-related data for the years 2022, 2023, and 2024 is being displayed in the AIS.

How to view foreign asset information?

First, log in to the income tax e-filing portal.
Next, navigate to the AIS section.
Open the Compliance Portal.
Click on the 'Reports' option.
Select the 'Foreign Assets Information' option.
Choose the relevant year and download the PDF report.
You can then view the details regarding your foreign assets and income.

Points to Note When Filing Tax Returns

The CBDT states that the information reflected in the AIS is based on reports received from abroad; therefore, it should not be considered a record of the taxpayer's entire foreign assets. However, if you hold assets or earn income abroad, you must provide complete and accurate details in Schedule FA and Schedule FSI of your ITR, regardless of whether or not the information appears in the AIS.