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Taxes on currency-exchange gains in a NRE account?
Posted: Tue Nov 22, 2011 9:10 am
by smariner
As an example -- let's say one puts $1 in a NRE account when the exchange rate is Rs. 50; and repatriates the money back to the US when the exchange rate is Rs 45 (ie. repatriation amount is US$ 1.11)
Does one need to pay taxes on the gain of 11 cents?
Taxes on currency-exchange gains in a NRE account?
Posted: Wed Nov 30, 2011 12:09 am
by smariner
smariner;424423As an example -- let's say one puts $1 in a NRE account when the exchange rate is Rs. 50; and repatriates the money back to the US when the exchange rate is Rs 45 (ie. repatriation amount is US$ 1.11)
Does one need to pay taxes on the gain of 11 cents?
Anyone know the answer to this?
Taxes on currency-exchange gains in a NRE account?
Posted: Tue Dec 13, 2011 11:34 pm
by greyfri
smariner;424423As an example -- let's say one puts $1 in a NRE account when the exchange rate is Rs. 50; and repatriates the money back to the US when the exchange rate is Rs 45 (ie. repatriation amount is US$ 1.11)
Does one need to pay taxes on the gain of 11 cents?
Yes. Basically the rupee is treated as a 'commodity' that you are buying and selling and you can take gains and losses. Google for Section 988.