Currency exchange rate for Indian taxes

vishwaGhar · Post by **vishwaGhar** » Sun Mar 18, 2007 7:07 am

The IRS provides detailed instructions on what rate to use to translate foreign income/expenses to USD.

Here are some links:
IRS : http://www.irs.gov/businesses/small/article/0,,id=130524,00.html
Treasury Dept (Exchange Rates) : http://fms.treas.gov/intn.html#rates

However, I am not able to find anything similar from the perspective of GOI taxes. How does one decide what exchange rate is to be used to convert foreign income to INR for the purposes of calculating tax liability in India ?

Thanx
vishwa

Bobus · Post by **Bobus** » Mon Mar 19, 2007 3:53 am

Indian IT law specifies what exchange rate to use for foreign source income depending on head of income.

I recall posting info about the same in a thread in the MSN forum which has some of the following words in its title: Computation of Cap Gain on US Investments. I believe the thread has been transfered to the new forum. Check the tax forum - the threads in that forum do not seem to stretch beyond 2 pages, and if you cannot find the thread, let me know.

vishwaGhar · Post by **vishwaGhar** » Tue Mar 20, 2007 3:41 am

Hi Bobus,

I looked through the threads under Taxes but could not find anything. BTW, is there any easy way to search through the forums ? I used the "Search Forums" option but it seems to do a search that lists every post that has any of the words in the search phrase.

Regards
vishwa

Bobus · Post by **Bobus** » Tue Mar 20, 2007 5:35 am

I looked through the threads under Taxes but could not find anything.

I asked you to check the Tax forum and mentioned that it has less than 2 pages of threads. I also said that the thread has some of the following words in its title: Computation of Cap Gain on US Investments.

I do not know what you mean by "looked thru the threads under taxes but could not find anything". The tax forum has 96 threads to date, and the thread is on the second page with the following title.

Foreign Investments: Computation of Cap Gain for ROR

Please click on the link above, see if your question is addressed in the thread, and post followup questions in that thread.

vishwaGhar · Post by **vishwaGhar** » Wed Mar 21, 2007 6:03 am

Thanks much Bobus. I sensed a little aggravation in your post. Sorry about that. It was not my intent to cause any aggravation. I do realize that you spend much valuable time responding to people's queries. Honestly, I did look thru the Tax Forum but for some reason did not see the link posted by you. I should have been more diligent while looking.

Thanks again for the response.

Regards
vishwa