26 May 2015
Charge off the loss to P&L account. Foreign Exchange Fluctuations on Revenue Account means on debtors of export, creditors for expenses payable abroad, then the foreign exchange fluctuations gains shall be taxable under the head of Profits and Gains of business or profession. Similarly, the foreign exchange fluctuations loss is deductible under section 37(1) while computing the income under the head “Profits and Gains of business or profession”. These foreign exchange fluctuations shall be taxable/deductible on accrual basis if the assessee is following accrual system of accounting.
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