Rate of exchange for TDS on foreign currency: telegraphic transfer buying rate applied on the deduction date. For deduction of tax at source on income payable in foreign currency, the rate of exchange shall be the telegraphic transfer buying rate of the currency as on the date tax is required to be deducted; from 17.08.2023 this applies to payments to an assessee outside India, to a Unit located in an IFSC, and by an IFSC Unit to an assessee in India. 'Telegraphic transfer buying rate' means the rate(s) adopted by the State Bank of India for buying such currency, having regard to Reserve Bank of India guidelines where applicable.