sir,
I have a US bank account and had some balance in it.I am an Indian resident and the bakn account was opened when I was in the US as resident long time ago... sec 44ab audit is required for my income due to my profession as engineer. The balance sheet was prepared in Rupees and the difference in the foreign account value due to dollar appreciation is say 5 lakhs.Now the funds are still in dollars in US bank. Do I have to pay tax on this unrealized foreign exchange? it is only a book value that is now showing up in my balance sheet as a higher number due to dollar appreciation but I have not cashed it or converted it to Rupees. It seems unreasonable topay tax on some unrealized amount..Is it not like someone who bought a home for Rs 1 lac and now it is worth 12 lac and even though he has not sold it,he has to pay tax on the unrealized appreciation?? someone pl clarify.Thanks.
CAclubindia
