Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Tax treatment of Foreign currency conversion

Varun Bhat (Taxation) (30 Points)

27 August 2009

Dear friends,

Kindly clarify the tax treatment for resident indian who returns to India from abroad (who was on private visit) and makes gain or loss on conversion of foreign currency, Is it liable to Capital gains tax or not?

Reply
Follow
Share

2 Replies

Ashish M (Chartered Accountant) (2731 Points)
Replied 27 August 2009

first of all for cap. gain to occur, their needs to be capital asset........ and foreign exchange is not a capital asset........moreover it is held for personal use, it can't be termed as capital asset at all, hence no cap. gains...........as for taxablility under any other head, in my view, it can't be taxable.....