If you are an NRI, OCI, Returning Indian (R2I), RNOR, expatriate, or a resident with overseas investments, this is one of the most important tax developments of 2026.

The Central Board of Direct Taxes (CBDT) has issued an order under Section 119 of the Income-tax Act, 1961, authorising the Income Tax Department to upload financial information received from foreign tax authorities under the Automatic Exchange of Information (AEOI) framework into taxpayers' Annual Information Statement (AIS).

While India has been receiving such information from various countries for several years, this order operationalises its display in the AIS, enabling taxpayers to view the information available with the Income Tax Department.

For taxpayers with foreign bank accounts, overseas investments, foreign pensions, dividend income, interest income or other cross-border financial assets, this makes reviewing the AIS before filing the Income Tax Return (ITR) more important than ever.

What Has CBDT Announced?

The CBDT has authorised the Director General of Income-tax (Systems) to upload information received under international information exchange agreements into taxpayers' Annual Information Statement (AIS).

The order covers foreign financial information received for:

• Calendar Year 2022
• Calendar Year 2023
• Calendar Year 2024
• Calendar Year 2025 (as and when received)

The information will be uploaded according to the procedures prescribed by the Income Tax Department.

This is another significant step towards a technology-driven and data-backed tax administration.

What is Automatic Exchange of Information (AEOI)?

The Automatic Exchange of Information (AEOI) is a global framework through which participating countries automatically exchange financial account information of tax residents every year.

India receives information under:

• Common Reporting Standard (CRS)
• Foreign Account Tax Compliance Act (FATCA) with the United States
• Double Taxation Avoidance Agreements (DTAA)
• Tax Information Exchange Agreements (TIEAs)

These international frameworks help tax authorities improve transparency, detect tax evasion and ensure proper reporting of cross-border income and financial assets.

What Foreign Information May Reflect in AIS?

Depending on the information received from overseas tax authorities, AIS may include details relating to:

• Foreign bank accounts
• Overseas investment and brokerage accounts
• Interest income
• Dividend income
• Certain financial investments
• Financial institution details
• Other reportable financial information exchanged under AEOI

The exact information displayed will depend on what is shared by the relevant foreign jurisdiction under applicable international agreements.

Why Returning NRIs Should Pay Close Attention

If you have recently moved back to India or are planning to return, this update deserves your immediate attention.

Many returning NRIs continue to hold:

• Overseas bank accounts
• Foreign brokerage and investment accounts
• Employer stock plans such as RSUs, ESOPs and ESPPs
• Retirement accounts including 401(k), IRA, RRSP, SIPP or Superannuation
• Foreign mutual funds and ETFs
• Dividend-paying investments
• Rental properties outside India

A common misconception is:

• "My overseas accounts are outside the Indian tax system."
• "India cannot access my US brokerage account."
• "Foreign income earned after returning to India is not visible."
• "Since taxes are paid abroad, reporting in India is unnecessary."

These assumptions can expose taxpayers to unnecessary compliance risks.

As your residential status changes from Non-Resident to RNOR or Resident, your tax obligations in India may also change. The latest CBDT order strengthens the visibility of foreign financial information by enabling its display in the AIS.

Returning Indians should therefore evaluate their residential status carefully, understand the taxability of overseas income, review their foreign asset reporting obligations and reconcile the information reflected in AIS before filing their Income Tax Return.

Why This Matters for NRIs

Even if you continue to qualify as an NRI, this development is still relevant.

Many NRIs have income connected with India, including:

• Sale of property in India
• Rental income
• Capital gains
• Interest income
• Indian investments
• Business or professional income

With increased use of global financial information and advanced data analytics, tax authorities are better equipped to verify disclosures wherever applicable.

Maintaining proper records and ensuring accurate reporting can help avoid unnecessary notices and compliance issues.

What This Means for NRIs, Returning Indians and Global Taxpayers

The display of foreign financial information in AIS marks another milestone in India's evolving international tax compliance framework.

For NRIs, Returning Indians, RNORs, OCIs and resident taxpayers with overseas assets, obtaining professional guidance through an NRI Returning to India Consultancy can help navigate tax reporting, which is becoming increasingly integrated with global information-sharing systems

AIS should no longer be viewed as a statement containing only domestic tax information. It is evolving into a comprehensive compliance document that may include financial information received from overseas jurisdictions under CRS, FATCA and other international agreements.

Accordingly, taxpayers with foreign financial interests should:

• Review their AIS before filing the Income Tax Return.
• Verify whether overseas income has been correctly disclosed.
• Determine the correct residential status.
• Evaluate the applicability of the Double Taxation Avoidance Agreement (DTAA).
• Claim Foreign Tax Credit (FTC), wherever eligible.
• Maintain proper documentation for foreign income, taxes paid overseas and foreign assets.

With increasing use of technology and international information exchange, accurate reporting of foreign income and overseas financial assets is becoming an integral part of tax compliance.

Practical Steps You Should Take

Before filing your Income Tax Return, consider the following checklist:

• Review your AIS for foreign financial information.
• Reconcile overseas income with your tax records.
• Determine your residential status correctly.
• Check whether your foreign income is taxable in India.
• Claim relief under the applicable DTAA, wherever eligible.
• Maintain documents relating to foreign taxes paid, overseas investments and financial accounts.
• Seek professional advice if you have recently returned to India or hold significant overseas assets.

Being proactive today can help prevent notices, reassessments and prolonged litigation in the future.

Key Takeaways

CBDT has authorised the display of foreign financial information in AIS.
Information received under AEOI, CRS and FATCA may increasingly become visible in taxpayers' Annual Information Statement.
The update is particularly significant for Returning NRIs, RNORs, residents with overseas assets and taxpayers having foreign financial interests.
Reviewing AIS before filing your Income Tax Return is now an important compliance step.
Correct determination of residential status, proper reporting of foreign income and appropriate DTAA planning can help minimise future tax disputes.

Need Expert Assistance?

Managing overseas income, foreign investments and changing residential status can be complex especially for NRIs and Returning Indians.

At Dinesh Aarjav & Associates, we have advised 10,500+ NRIs across 70+ countries on cross-border taxation, Returning to India planning, DTAA advisory, Foreign Tax Credit, FEMA compliance and Indian income tax filings.

If you have foreign bank accounts, overseas investments, RSUs, ESOPs, pensions, rental income or other global assets, our team can help you understand your Indian tax obligations and ensure accurate compliance.

Read Also: 

• Tax Residency Certificate (TRC) for NRIs in India
• Importance of Filing Income Tax Returns for NRIs in India
• Understanding Income Tax Returns (ITR) in India - Filing Requirements & Consequences
• FEIE vs Foreign Tax Credit (FTC) for US Citizens, Green Card Holders and Returning NRIs in India