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On conversion from foreign currency to Indian rupee for income tax filing purposes, what is the reference document recognised by income tax rules? What is the date for applying the exchange rate?
Kindly answer as applicable to include rupee exchange rates for currencies outside the standard five - (US, UK, Canada, Japan and Australia) for example, BRICS countries.
Srishyla Melkote V
Rule 115 of the Income-tax Rules, 1962 provides for the rate of exchange that should be used for conversion of any foreign income accruing/ arising to an assessee.
As per the said rules, Telegraphic Transfer Buying Rate (‘TTBR’) of the relevant currency as adopted by State Bank of India on the specified date. For this purpose, ‘specified date’ means as below:
The SBI TTBR is available on a daily basis on the official site of the bank. However, please note that for historical rates, the same needs to be obtained from SBI by making a special application.
The writer is a practising chartered accountant
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