Rule 115A - Rate of exchange for conversion of rupees into foreign currency and reconversion of foreign currency into rupees for the purpose of computation of capital gains under the proviso to clause (a) of sub-section (1) of section 48 of the Income-tax Act, 1961.

Exchange rate method for NRI capital gains: prescribed telegraphic transfer rates govern conversion and reconversion of amounts.

Rule 115A requires that, for a non resident Indian disposing of shares or debentures of an Indian company, conversion of cost of acquisition uses the average of the telegraphic transfer buying and selling rates of the foreign currency initially utilised as on the acquisition date; conversion of transfer related expenditure and of the full value of consideration uses that same average as on the transfer date; and reconversion of computed capital gains into rupees uses the telegraphic transfer buying rate as on the transfer date, with Explanation defining the telegraphic transfer rates.