Income-tax Act, 2025 · Part D — Profits and gains of business or profession

Section 43Taxation of foreign exchange fluctuation

Income-tax Act, 2025 (30 of 2025)

(1)

Subject to the provisions of section 42, any gain or loss arising on account of change in foreign exchange rates on foreign currency transactions shall be treated as income or loss, as the case may be, and shall be computed as per the income computation and disclosure standards notified under section 276(2).

(2)

The provisions of sub-section (1) shall be applicable to all foreign currency transactions, including those relating to—

(a)monetary items and non-monetary items;

(b)translation of financial statements of foreign operations;

(c)forward exchange contracts; and

(d)foreign currency translation reserves.

This section refers to

§ 276 Method of accounting

§ 42 Capitalising impact of foreign exchange fluctuation

Referenced by

§ 207(5)

§ 208 Tax on income from units purchased in foreign currency or capital gains arising from their transfer.

§ 209 Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.

§ 210 Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

§ 225 Income from business of operating qualifying ships

§ 230(1)

§ 27 Manner of computing profits and gains of business or profession

§ 55 Insurance business

§ 58(1)

§ 60(1)

§ 61(1)

§ Schedule XIV INSURANCE BUSINESS