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 ?
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Loss on Foreign Currency Loan
Replies (5)
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.
Thanks for the information
See 43A of income tax .
if related to capital assets it will be added or deducted in cost of assets.
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)
IT IS REVENUE INCOME
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