16 January 2009
What treatment of profit or loss on effect of change in foreign exchange rate (AS 11) i.e. whether income tax Act allowed loss or gain on foreign exchange rate which is debited/credited in profit & loss account. If allowed under which sec. if not allowed what will treatment pls. help me in this regard immedetaly....
16 January 2009
There is no such specific provision relating to the above matter. however the loss/gain derived by following the AS11, is a deductible expenditure under the IT Act 1961.
Hence the Gain or loss can be set off against the income, though nature is of notional item.
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