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Loss on Foreign Currency Loan

Tax queries 1676 views 5 replies
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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 ?

 

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On 14 November 2007 at 10:59 Report
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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.
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On 14 November 2007 at 12:38
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service
36 Points Posted on 14 November 2007
Thanks for the information
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On 14 November 2007 at 14:36
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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.
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On 14 November 2007 at 17:42
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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)
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On 14 November 2007 at 21:42
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SERVICE
43 Points Posted on 15 November 2007
IT IS REVENUE INCOME
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On 15 November 2007 at 19:30


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