Section 43AACentral Act
Section 43AA: [ Taxation of foreign exchange fluctuation. [Inserted by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.]
[ Taxation of foreign exchange fluctuation. [Inserted by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.]
(1)
Subject to the provisions of section 43A, any gain or loss arising on account of any change in foreign exchange rates shall be treated as income or loss, as the case may be, and such gain or loss shall be computed in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145.(2)
For the purposes of sub-section (1), gain or loss arising on account of the effects of change in foreign exchange rates shall be in respect of all foreign currency transactions, including those relating to -(i)
monetary items and non-monetary items;(ii)
translation of financial statements of foreign operations;(iii)
forward exchange contracts;(iv)
foreign currency translation reserves.]Previous
Sec 43A — [ Special provisions consequential to changes in rate of exchange of currency. [ Substituted by Act 20 of 2002, Section 21, for Section 43-A (w.e.f. 1.4.2003).]
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Sec 43B — [ Certain deductions to be only on actual payment. [Inserted by Act 11 of 1983, Section 18 (w.e.f. 1.4.1984).]
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