The Automatic Exchange of Information (AEOI) is a global concept and standard for tax transparency, designed to combat offshore tax evasion and the stashing of unaccounted money abroad. The AEOI standard was developed by the Organisation for Economic Co-operation and Development (OECD) and the G20 countries, with the core framework, the Common Reporting Standard (CRS), being presented to G20 leaders in Brisbane on November 16, 2014.
The mechanism requires financial institutions in a participating jurisdiction (the "source" country) to collect and report information about financial accounts held by individuals and entities who are tax residents of other participating countries. This information is then transmitted automatically on a yearly basis to the tax authorities of the account holder's country of residence. The information exchanged includes identification details, account numbers, account balances, and income like dividends and interest.
AEOI connects directly to the CRS, which is the global standard, and the US-specific Foreign Account Tax Compliance Act (FATCA), which was enacted in 2010 to tackle tax evasion by US residents. India is an early adopter of the CRS, having committed to exchange information automatically by 2017 and joining the Multilateral Competent Authority Agreement (MCAA) on June 3, 2015. Domestically, India implemented the framework through Section 285BA of the Income-tax Act, 1961, and Rules 114F to 114H of the Income-tax Rules, 1962. India has activated AEOI relationships to receive information from 111 jurisdictions and send information to 86 jurisdictions. Recent changes include the Central Board of Direct Taxes (CBDT) releasing a revised Guidance Note on FATCA and CRS on July 24, 2026, which incorporates the Income-tax Rules, 2026, and the OECD's consolidated CRS of 2025. This framework has been instrumental in India's data-driven enforcement, leading to the disclosure of substantial foreign assets and income.