Your foreign assets and income will now be visible on the Income Tax portal; CBDT has launched a new facility..

A significant step has been taken to provide better facilities to taxpayers and encourage voluntary tax compliance. Under this initiative, 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 obtained under the Automatic Exchange of Information (AEOI) framework.

Providing details on this, a senior official stated on Thursday (July 16) that this facility has been launched not to scrutinize taxpayers, but to assist them in correctly complying with tax regulations.

**Agreements with over 100 countries for financial information**
India has entered into agreements with more than 100 countries worldwide for the exchange of financial information. Under these agreements, India receives information annually regarding 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 may include details on foreign bank accounts, custodial accounts, certain financial investments, interest, dividends, and other specified financial income shared by partner countries in accordance with international standards.

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.

**CBDT clarifies stance on foreign assets**
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 Schedules FA and FSI of their income tax returns, regardless of whether this information appears in the AIS (Annual Information Statement) or not.

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 into Schedules FA and FSI when filing income tax returns.

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, they can view the complete details.

The CBDT stated that this facility has been launched entirely in the interest of taxpayers; its sole objective is to provide them with the 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 form of investigation or inquiry.

Notifications being sent to taxpayers
As part of this initiative, taxpayers are receiving SMS and email notifications informing them about this facility and reminding them to provide accurate details of any foreign assets or income when filing their income tax returns 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. It will help with 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 timely access to necessary information, thereby reducing inadvertent reporting errors, enhancing the accuracy of income tax returns, and making tax compliance simpler, more convenient, and more transparent than before.

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