1(1) Subject to the provisions of section 43A, any gain or loss arising on account of any change in foreign exchange rates shall be treated as income or loss, as the case may be, and such gain or loss shall be computed in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145.
(2) For the purposes of sub-section (1), gain or loss arising on account of the effects of change in foreign exchange rates shall be in respect of all foreign currency transactions, including those relating to-
(i) monetary items and non-monetary items;
(ii) translation of financial statements of foreign operations;
(iii) forward exchange contracts;
(iv) foreign currency translation reserves.
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1. Ins. by Act 13 of 2018, s. 13 (w.r.e.f. 1-4-2017).
Section 40A Expenses or payments not deductible in certain circumstances
Section 41 Profits chargeable to tax
Section 43A Special provisions consequential to changes in rate of exchange of currency
Section 43AA Taxation of foreign exchange fluctuation
Section 43B Certain deductions to be only on actual payment
Section 43C Special provision for computation of cost of acquisition of certain assets
Section 43CB Computation of income from construction and service contracts