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Rate of exchange for conversion of rupees into foreign currency and reconversion of foreign currency into rupees for purpose of computation of capital gains under section 72

Rule 52 — Rate of exchange for conversion of rupees into foreign currency and reconversion of foreign currency into rupees for purpose of computation of capital gains under section 72

Parent Act Section(s): Section 72

Full Text

  1. Rate of exchange for conversion of rupees into foreign currency and reconversion of foreign currency into rupees for purpose of computation of capital gains under section 72.– (1) For the purpose of computing capital gains arising from the transfer of a capital asset being shares in, or debentures of, an Indian company, in the case of an assessee who is a non-resident, the rate of exchange shall be, in the circumstances referred to in column B of the following table, as per column C thereof:— Table S.No Circumstances Rate of Exchange A B C
  2. For converting the cost of acquisition of the The average of the telegraphic transfer buying rate and capital asset telegraphic transfer selling rate of the foreign currency initially utilised in the purchase of the said asset, as on the date of its acquisition.
  3. For converting the expenditure incurred wholly The average of the telegraphic transfer buying rate and and exclusively in connection with the transfer telegraphic transfer selling rate of the foreign currency of the capital asset referred to in Sl.No. 1, initially utilised in the purchase of the said asset, as on the date of transfer of the capital asset.
  4. For converting the full value of consideration The average of the telegraphic transfer buying rate and received or accruing as a result of the transfer telegraphic transfer selling rate of the foreign currency of the capital asset referred to in Sl.No. 1, initially utilised in the purchase of the said asset, as on the date of transfer of the capital asset.
  5. For converting the capital gains computed in The telegraphic transfer buying rate of such currency, as the foreign currency initially utilised in the on the date of transfer of the capital asset.

purchase of the capital asset into rupees, (2) For the purposes of this rule,– (a) “telegraphic transfer buying rate” shall have the meaning assigned to it in rule 206; and (b) “telegraphic transfer selling rate”, in relation to a foreign currency, means the rate of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for selling such currency where such currency is made available by that bank through telegraphic transfer.

Cross-References

Act Sections Referenced

  • Section 72

Practical Notes

[To be populated — interpretive notes, circular references, case law pointers]

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