Rate of Exchange for Conversion of Foreign Currency Income and TDS - Rule 206 & 207 (New) / Rule 115 & 26 (Old)

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....Tax Rules, 1962. Rule 206 prescribes the exchange rate to be used for converting income expressed in foreign currency into Indian rupees for income-tax purposes. Rule 206(1): Applicable Exchange Rate The value of foreign-currency income is to be converted into Indian rupees using the Telegraphic Transfer Buying Rate (TTBR) applicable on the specified date. Rule 206(2): Meaning of Speci....

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....aid. • Capital gains - Last day of the month immediately preceding the month in which the relevant capital asset is transferred. Rule 206(2)(b)(ii): Income Subject to TDS Where the foreign-currency income is subject to TDS under Rule 207, the specified date is the date on which tax is required to be deducted under Chapter XIX-B. Rule 206(3): Exception The general convers....

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....ces Centre (IFSC); or • by an IFSC Unit[section 2(q) & 2(zc) of Special Economic Zones Act, 2005] to an assessee in India. Rule 207(3): Meaning of TTBR TTBR means the exchange rate adopted by the State Bank of India for purchasing the relevant foreign currency through telegraphic transfer, having regard to RBI guidelines. Comparative Analysis: Rules 115 & 26 of the Inc....