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?
Varun Bhat (Taxation) (30 Points)
27 August 2009Dear 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?
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.....
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