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Loss on Foreign Currency Loan

Tax queries 1684 views 5 replies

Ramachandra

service

36 Points Posted on 14 November 2007

I have some queries regarding income tax

Whether Loss on Foreing Currency Loan on Capital Payment is a capital loss or revenue loss ?

Forward Contract income is revenue income or capital gain ?

Replies (5)

Indira Singh

Chartered Accountant

87 Points Posted on 14 November 2007

HI Loss on foreing currency loan on capital payment is a capital loss. Forward contract is done for three months period so the gain aur loss arises through this is revenue gain and not capital one.

Ramachandra

service

36 Points Posted on 14 November 2007

Thanks for the information

Vijay K. Agrawal

Service

608 Points Posted on 14 November 2007

See 43A of income tax . if related to capital assets it will be added or deducted in cost of assets.

CA AYYAPPA

Chartered Accountant

272 Points Posted on 14 November 2007

LOSS OR PROFIT exchange fluctuation on foreing currency loan on a capital has to be adjusted to capital asset. And for depreciation purpose the same shall be considered before charging depreciation (ADD to Deletion)