Foreign exchange receipt requirement for deduction: deduction allowed only for income remitted in convertible foreign exchange. The provision conditions a full deduction on the income being received in convertible foreign exchange in India or, if received or converted abroad, being brought into India in accordance with foreign exchange law; an Explanation adopts the explanatory rules of a comparable deduction provision for interpretation. The provision's scope is later limited to Indian companies and a subordinate subsection is omitted, narrowing eligibility and procedural structure for claiming the deduction.