43a
This query is : Resolved
21 November 2013
The provisions of section 43A of the Income
Tax Act are summarised hereunder:
a) Where the assessee has acquired any assets
from a country outside India
b) The assets are acquired for the purpose of
business or profession.
c) Consequent to change in rate of exchange,
there is increase / decrease in the liability of the
assessee expressed in Indian currency towards
cost of the assets or repayment of money
borrowed for acquiring capital asset along with
interest in foreign currency.
d) Such increase or reduction in the liability shall
be added or deducted from the actual cost of
assets as and when paid or received.
The provisions of section as can be seen from the
above are not applicable where indigenous assets
are acquired out of foreign currency loans.
Tax Act are summarised hereunder:
a) Where the assessee has acquired any assets
from a country outside India
b) The assets are acquired for the purpose of
business or profession.
c) Consequent to change in rate of exchange,
there is increase / decrease in the liability of the
assessee expressed in Indian currency towards
cost of the assets or repayment of money
borrowed for acquiring capital asset along with
interest in foreign currency.
d) Such increase or reduction in the liability shall
be added or deducted from the actual cost of
assets as and when paid or received.
The provisions of section as can be seen from the
above are not applicable where indigenous assets
are acquired out of foreign currency loans.
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