06 October 2012
As per AS-11(Revised) all foreign currency monetary items need to be revalued at closing rate(if outstanding)and resulting loss/profit needs to be recognised in the financial statements.
Is the same loss/profit allowed as per Income Tax Act,1961??? What is the Tax Treatment??
06 October 2012
In my opinion, it is allowable expense under section 37 of the Income tax act.
It is only in the case of capital assets, that section 43A of the Income tax act dissallows the same as it has to be adjusted in the cost of that capital asset and not in profit and loss account.
CAclubindia
