The Income Tax Department has introduced a new feature that will make tax filing easier for many taxpayers.
The Central Board of Direct Taxes (CBDT) has started displaying details of taxpayers’ foreign assets and foreign income on the Income Tax e-filing portal.
Earlier, this information was available only with the tax department.
The move is aimed at improving transparency and helping taxpayers file accurate Income Tax Returns (ITRs).
Foreign Asset Details Now Available in AIS
The CBDT is showing foreign asset and income information in the Annual Information Statement (AIS) of eligible taxpayers.
The information is received under the Automatic Exchange of Information (AEOI) framework, through which India exchanges financial account information with more than 100 countries and jurisdictions.
This data may include details such as:
Foreign bank accounts
Custodial accounts
Certain financial investments
Interest income
Dividend income
Other specified foreign financial income
The information is shared by partner countries under internationally accepted information exchange standards.
Information for 2022 to 2024 Is Already Available
At present, the Income Tax Department has uploaded foreign asset and income information for the years:
2022
2023
2024
According to government sources, information for 2025 will be added to the AIS after it is received from partner countries, which is expected around September or October.
Every year, India receives AEOI data for the previous calendar year starting from September.
Why Has CBDT Introduced This Feature?
Government sources say the purpose of this initiative is to help taxpayers, not to investigate them.
By giving taxpayers access to the same information available with the Income Tax Department, the CBDT hopes to:
Reduce accidental reporting mistakes.
Improve the accuracy of Income Tax Returns (ITRs).
Make tax compliance simpler and more transparent.
Encourage voluntary tax compliance.
Taxpayers can now verify the information before filing their returns, reducing the chances of errors or mismatches that could lead to notices later.
Overall, the new feature is expected to make the tax filing process more transparent and convenient, especially for individuals who have foreign financial assets or earn income from overseas.
