CBDT enables foreign asset disclosure in AIS: What taxpayers need to know before filing ITR

The Central Board of Direct Taxes (CBDT) has introduced a new feature in the Annual Information Statement (AIS) that allows taxpayers to view certain foreign asset information received under the Automatic Exchange of Information (AEOI) framework. The move is aimed at improving tax transparency and helping taxpayers accurately report foreign assets and foreign-source income while filing their income tax returns (ITRs).

AIS now displays foreign asset information

Under the AEOI framework, India receives financial account information relating to Indian tax residents from more than 100 partner jurisdictions through the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) arrangements. According to the RSM India note, India currently has activated exchange relationships with 111 jurisdictions for receiving financial account information and 86 jurisdictions for exchanging such information, significantly enhancing the tax department's ability to identify offshore assets and income that may not have been reported.

The newly introduced functionality enables taxpayers to access the information under the "Foreign Assets Information" section available within the "Reports" tab of AIS on the income-tax e-Filing portal. Depending on the information shared by overseas jurisdictions, the report may include details of foreign bank and depository accounts, custodial accounts, certain overseas financial investments, interest income, dividend income and other specified financial income reported by foreign financial institutions.

AIS is not a substitute for taxpayer disclosure

However, the CBDT has clarified that the information displayed in AIS is only for taxpayer facilitation and should not be treated as a complete or conclusive record of all foreign assets or foreign-source income. Taxpayers continue to bear the responsibility of reporting all foreign assets and income required under the Income-tax Act, irrespective of whether such information appears in AIS.

Don't wait for AIS before filing your return

The CBDT has also prescribed timelines for uploading AEOI information. Data relating to calendar years 2022, 2023 and 2024 will be uploaded within 90 days of the CBDT order, while information for calendar year 2025 will be uploaded within 90 days from the end of the month in which it is received by the department. Since foreign asset information for calendar year 2025 generally begins arriving from partner jurisdictions only from September of the following year, taxpayers filing ITRs for FY 2025-26 should not wait for AIS to reflect this information before making disclosures. Instead, they should rely on their own records while completing Schedule FA and Schedule FSI, wherever applicable.

How to access the information and key compliance risks

Taxpayers can access the report by logging into the income-tax e-Filing portal, navigating to the AIS, selecting the "Reports" tab and choosing "Foreign Assets Information." The CBDT is also sending SMS and email alerts to inform taxpayers about the new facility and related reporting requirements.

The RSM note cautions that failure to disclose foreign assets or foreign-source income may invite significant consequences under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Penalties can extend up to ₹10 lakh in specified cases, apart from assessment and prosecution proceedings in serious instances of non-compliance. It advises taxpayers with overseas financial assets to carefully reconcile available information and maintain adequate documentation before filing their returns.