Foreign Asset Information Appears in AIS: What Taxpayers Should Reconcile

Taxpayers can now see the foreign-asset information that India receives from overseas tax administrations under the Common Reporting Standard (CRS) and the US Foreign Account Tax Compliance Act (FATCA) in their Annual Information Statement (AIS). The Central Board of Direct Taxes (CBDT) announced the facility through a CBDT note on display of CRS/FATCA information in AIS, which it asked the e-filing directorate to host on the portal by Office Memorandum F.No. 414(B)21/2023-T(Inv.VI)/64 dated 17 July 2026.

The timing matters for the Assessment Year 2026-27 return season. Anyone with an overseas bank account, custodial account or investment can compare what the department already holds with what they plan to report in the return.

What the AIS now shows

According to the CBDT note, India receives financial account information under the Automatic Exchange of Information (AEOI) framework from more than 100 partner jurisdictions. The information covers foreign bank accounts, custodial accounts, certain financial investments, and interest, dividends and other specified financial income.

CBDT is also sending SMSs and emails to taxpayers reminding them to report foreign assets and foreign income correctly in their AY 2026-27 returns. The note describes the move as one "undertaken to facilitate, and not to investigate, taxpayers in meeting their compliance obligations."

AIS is not the limit of disclosure

The CBDT note is clear that taxpayers must "correctly and completely report all foreign assets and foreign source income in Schedule FA and Schedule FSI of their Income-tax Return, irrespective of whether such assets or income are reflected in AIS." So an account missing from AIS does not remove the reporting duty, and an entry that does appear is an information point to be checked, not a final finding of income or non-compliance.

Calendar year versus financial year

The data is displayed by calendar year because that is how most foreign institutions report. The Indian return covers a financial year from April to March. A balance or interest figure for CY 2024 will therefore not line up neatly with a return period, even where both sets of figures are correct. Advisers should map transaction dates and reporting periods before treating a difference as an omission.

How to reconcile each entry

A practical review, entry by entry, looks like this:

1. Does the entry belong to the taxpayer? Compare the institution name, account or investment reference, country and other identifying fields with the taxpayer's own records. Names and identifiers are often recorded differently across jurisdictions.
2. What is the ownership? Accounts may be held individually, jointly, in a representative capacity or as an authorised signatory without beneficial ownership. Check account-opening and holding documents before accepting the AIS description.
3. What does the number represent? It may be a year-end balance, gross proceeds, interest or dividend. Establish its nature, currency and period before it goes anywhere in the return.
4. Currency conversion: Keep the original foreign-currency amount, the conversion method used and the rupee value in the working papers, so an exchange-rate difference can be told apart from a missed transaction.
5. Old, dormant or closed accounts: A little-used account can still be reported by a foreign institution. For accounts closed during the year, keep the closure statement.
6. Link assets and income: An overseas bank account may need both Schedule FA disclosure and, if it earned interest, reporting of that income. Where foreign tax was paid, any relief claim should be consistent with the income reported.

Each AIS item should end in one of three outcomes: matched and considered in the return; explained as not requiring a particular disclosure on the facts; or disputed because the data is wrong or does not belong to the taxpayer. The reasoning and supporting documents should be recorded at the time.

When an entry is wrong

If an entry is unfamiliar, duplicated, wrongly valued or attributed to the wrong person, first obtain the underlying statements. Where the error sits in the foreign institution's own records, the taxpayer may need to contact that institution. Use the feedback facility in AIS where it is available for the entry, and give specific, document-backed responses rather than a general denial. Keep acknowledgements, statements, closure confirmations and correspondence with the return file. An incorrect entry should not be ignored merely because the taxpayer believes it has no tax effect, since unresolved data can lead to questions later.

What CAs should change in their process

The AIS foreign-asset report should be added to the return checklist for every client with an overseas connection, but it cannot replace the client questionnaire. Specific questions on foreign accounts, investments, signing authority, joint holdings, closures, foreign income and foreign tax paid will surface items that AIS does not show. Prior-year Schedule FA entries should also be compared to catch accounts that are still open, were closed or have newly become reportable. With CY 2025 data due to be added in September or October 2026, clients whose returns are already filed should also check the updated AIS once it appears.

Updated on 27 September 2026: added the CBDT note and Office Memorandum of 17 July 2026 as sources, the calendar years displayed, the CY 2025 update timeline, the portal path and CBDT's statement that Schedule FA and FSI reporting applies irrespective of AIS; removed an unverified go-live date.