Exchange gain/loss

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 Hi,

I have a query my company taken foreign currency loan in the year 2010-2011 and payable in 2011-2012.

as on 31-03-2011 i book exchange gain as per closing rate of USD.

can i reserve the same amount of gain as loss in the year 2011-2012 bz i pay fixed amount of loan.

Is that ok that i will pay tax on gain in year 2010-2011 and save tax on the year 2011-2012 as exchange loss book.

Please help me urgently.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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23 September 2011 As per AS-11 Prescribed exchange gain would be become as reserve as gain on exchange for future years exchange loss set-off but exchange loss should be written off to the P&L A/C immediately if no exchange gain reserve on the balance sheet at the time of recognise of exchange loss.
so in your case as per my opinion you can exercise either of the both options at your choice.
OM SAI SRI SAI JAI JAI SAI

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