banner_ad

Computation of capital gains in case of foreign investment

Tax queries 225 views 1 replies


Hi friends ,

One of my clients Invested in Equity shares of a foreign company @ 1$/Share and after four years disposed the same at 1$/share .the gain or loss that arised is only because of forex difference . my doubt is to whether to treat such forex difference as capital gain or not ...?

 

 

Replies (1)
yes as per law it should be considered. For taxation purpose, transaction is converted to INR amount as per exchange rate on day of transaction. You are effectively paying tax on forex gains in this case.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details