In a significant move to strengthen tax transparency and improve monitoring of offshore financial assets, the Central Board of Direct Taxes (CBDT) has issued an order authorising the integration of information received under the Automatic Exchange of Information (AEOI) framework into taxpayers’ Annual Information Statement (AIS) through the newly introduced Form No. 168.
The order, issued by the Ministry of Finance, Department of Revenue, empowers the Director General of Income-tax (Systems), Delhi, to upload foreign financial information received under international information-sharing agreements into the AIS within a prescribed timeline.
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Order Issued Under Section 239 of the Income-tax Act, 2025
The CBDT has exercised its powers under Section 239 of the Income-tax Act, 2025, read with Rule 245(2) of the Income-tax Rules, 2026, to operationalise the reporting mechanism.
As per the order:
- Information received under the Automatic Exchange of Information (AEOI) framework pursuant to agreements referred to in Section 159 of the Income-tax Act, 2025, shall be uploaded in the taxpayer’s Annual Information Statement (AIS) in Form No. 168.
- The upload must be completed within 90 days from the end of the month in which the information is receivedby the Director General of Income-tax (Systems).
This marks a major step towards ensuring that foreign financial account information becomes part of taxpayers’ consolidated compliance profile.
DGIT (Systems) to Prescribe Technical Standards
The CBDT has further directed that the Director General of Income-tax (Systems), Delhi, will lay down the:
- procedures,
- reporting formats, and
- technical standards
for uploading information into AIS Form No. 168.
These specifications are expected to facilitate uniform implementation across the Income Tax Department’s technology platform.
Boost to Tax Transparency
The Automatic Exchange of Information (AEOI) framework enables India to receive financial account information from foreign tax jurisdictions under international agreements aimed at combating tax evasion and undisclosed offshore assets.
By incorporating such information into the Annual Information Statement, taxpayers will be able to view foreign financial information available with the Income Tax Department, while tax authorities can more effectively verify disclosures made in income tax returns.
The measure is expected to:
- improve transparency in cross-border financial reporting;
- assist in detecting undisclosed foreign income and assets;
- facilitate data-driven tax administration; and
- enhance voluntary tax compliance.
Timeline for Implementation
The order has been issued from Kartavya Bhawan, New Delhi, and is dated July 8, 2026. It takes immediate effect, requiring the Income Tax Systems Directorate to operationalise the reporting framework in accordance with the timelines prescribed by the CBDT.
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