about tax treatment of sale-purchase of dollars..

Save Share

This query is : Open

GAURAV JAIN (Querist)
Follow

11 August 2010 if we purchased $1000 at RS. 50000 for going outside india but later on, program is cancelled and we sold the above $1000 at Rs. 49000/52000 then what tax treatment will be done of above profit/ loss....
if sale and purchase of dollars is business of assessee then what treatment will be done..
also clarify me its accounting treatment??
whether is there any diffrence if it is of personal nature / bussiness nature...

plzzz clarify all in detail..and thanx in advance

taxindiaconnect

taxindiaconnect (Expert)
Follow

11 August 2010 It is a ralised gain or loss on account of revenue transaction, is thus fully taxable of tax deductible as the case may be. In books also the loss or gain as the case may be shall be fully chareable or creditable to P& L Account.

Message likes : 1 times

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

11 August 2010 case 1 > Loss of Rs. 1000/- to be adjusted

Case 2 > Profit of 2000/- taxable

If this exp has been incurred in the ordinary course of business , it will be treated as business loss / gain otherwise it will be treated as personal in nature.

Message likes : 1 times

GAURAV JAIN

GAURAV JAIN (Querist)
Follow

11 August 2010 if that transaction is of personal nature then clarify me about taxability????

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now