Special provision consequential to changes in rate of exchange - (New) section 42 / (Old) Section 43A

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....ariation in Liability [ Section 42(2) ] For this section, the liability shall exclude any part met directly or indirectly by any other person or authority and the "variation in liability" shall be computed as- A = B-C where,- • A = variation in liability; • B = payment expressed in Indian currency at the time when it is made- • (a) towards the whole or part of the cost of asset; or • (b) towards repayment of the whole or part of the moneys borrowed, directly or indirectly, along with interest in foreign currency, specifically for acquiring such asset; • C = liability, corresponding to the amount referred in B, in Indian currency at the time of acquisition of suc....

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....the contract as is available for discharging the said liability, be computed with reference to the rate of exchange specified therein. Under Section 43A of the Income Tax Act, 1961 [ Upto 31.03.2026 ] • Section 43A applies only in respect of assets acquired from a country outside India through a loan in foreign currency or foreign supplier's credit. • Section 43A shall not apply where an asset is purchased in India through a foreign currency loan. • The adjustments referred to in Section 43A shall be made only in the previous year in which actual payment is made to the foreign supplier towards the whole or a part of the cost of the asset; or towards repayment of the whole or a part of the ....