Section 13 of Finance Act 2018 New section 43AA Income Tax Act inserted

By | April 1, 2018
(Last Updated On: April 14, 2018)

Section 13 of Finance Act 2018

[Section 13 of Finance Act 2018 deals with Insertion of new section 43AA. and is covered in CHAPTER III DIRECT TAXES]

Insertion of new section 43AA.

13. After section 43A of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2017, namely:—

43AA. Taxation of foreign exchange fluctuation.—(1) Subject to the provisions of section 43A, any gain or loss arising on account of any change in foreign exchange rates shall be treated as income or loss, as the case may be, and such gain or loss shall be computed in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145.

(2) For the purposes of sub-section (1), gain or loss arising on account of the effects of change in foreign exchange rates shall be in respect of all foreign currency transactions, including those relating to—

(i)monetary items and non-monetary items;
(ii)translation of financial statements of foreign operations;
(iii)forward exchange contracts;
(iv)foreign currency translation reserves.”.

Finance Act 2018 : Assented by President : Download Print Notification

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