Inclusion of International Financial Information in AIS (Form 168)
CBDT Authorises Inclusion of International Financial Information in AIS (Form 168)
The Central Board of Direct Taxes (CBDT) has issued an order to ensure that information received by India under the Automatic Exchange of Information (AEOI) framework is reflected in taxpayers’ Annual Information Statement (AIS) in Form No. 168 under the Income-tax Act, 2025.
This move is aimed at increasing transparency and enabling taxpayers to view information received from foreign tax authorities through international information-sharing agreements.
What is Automatic Exchange of Information (AEOI)?
The Automatic Exchange of Information (AEOI) is an international mechanism through which countries automatically exchange financial account information of taxpayers who hold assets or accounts in other jurisdictions.
Under tax information exchange agreements and international standards (such as the OECD’s Common Reporting Standard), foreign tax authorities share details like:
- Bank accounts held outside India.
- Interest earned on overseas deposits.
- Dividends received from foreign companies.
- Income from certain financial investments.
- Other reportable foreign financial assets.
This information helps tax authorities identify undisclosed foreign income and assets and improve tax compliance.
What has CBDT authorised?
CBDT has authorised the Director General of Income-tax (Systems), Delhi to upload AEOI information received under agreements referred to in section 159 of the Income-tax Act, 2025 into the taxpayer’s Annual Information Statement (AIS) in Form No. 168.
Time limit for uploading the information
The order provides that the AEOI information must be uploaded:
- Within 90 days from the end of the month in which the information is received by the Director General of Income-tax (Systems).
This ensures that taxpayers can access the information in their AIS within a defined timeframe.
Role of the Director General of Income-tax (Systems)
Apart from uploading the information, the Director General of Income-tax (Systems) has also been entrusted with the responsibility of prescribing:
- Procedures for uploading the information.
- Technical formats.
- Data standards.
- Any other system requirements necessary for displaying the information in Form No. 168.
Why is this important for taxpayers?
The inclusion of AEOI data in AIS has several implications:
- Greater transparency: Taxpayers can view foreign financial information available with the Income-tax Department.
- Accurate return filing: It becomes easier to correctly disclose foreign income and assets while filing the income-tax return.
- Reduced litigation: Taxpayers can reconcile discrepancies before filing their returns or responding to departmental notices.
- Improved compliance: The measure supports voluntary tax compliance and discourages non-disclosure of overseas financial assets.
Practical impact
Suppose an Indian resident maintains a bank account in another country that reports information under the AEOI framework. Once the Income-tax Department receives that information, it may now be reflected in the taxpayer’s AIS (Form No. 168) within the prescribed timeline. The taxpayer can review the details and ensure that the corresponding foreign income or assets, wherever required under the Income-tax Act, 2025, are properly reported.
Conclusion
This order operationalises the reporting of internationally exchanged financial information in the Annual Information Statement. By making AEOI information available through AIS, CBDT has strengthened transparency, enabled taxpayers to verify the information available with the tax department, and promoted accurate reporting of foreign income and assets under the Income-tax Act, 2025.
Also Read: “CBDT Notifies New Forms PAN CR-01 & PAN CR-02 for PAN Correction from 1 April 2026”
Also Read: FAQs and Guidance notes on Forms under Income-tax Rules, 2026
Read More: Union Budget 2026 – CA Cult
