How to convert foreign currency to Indian rupee for tax purpose


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Hello Amlan,


 


I had come to Sydney in 457 visa on behalf of TCS. I am returning on 31st of January. So my total duration of stay in Sydney is becoming 180 days. So please let me know if my salary earned here will be taxed again in india? If yes then please let me know how my salary in AUD will be converted in INR while declaration.


 


Awaiting for your response.


 


Thanks,


Subhankar


 


Solution - By Amlan Dutta 


 


 


Assuming that you are speaking for FY 2018 19, it means that you have stayed in india for 365- 180 = 185 days i.e and so you are a resident indian ...in this case therefore your Australian income is to be included in the scope of taxable income.. as far as conversion is concerned , you will convert based on SBI telegraphic transfer buying rates based on previous month rates .......


 


.e Convert your income in foreign currency into Rupees by using the State Bank of India telegraphic transfer buying rate (TTBR) of the last day of the month before the month in which income is due.                                               


          For example, for converting salary income of Sept 2018  2014, use the TTBR of AUD for Aug 2018 and convert your salary into Indian Rupees and likewise for all other months ....i do hope that you know how to claim foreign tax credit , you will need to fill form 67 online and submit that before claiming DTAA relief as per whatever is applicable......


 


The rate quoted by the Hindu Business Line is not acceptable to the AO even if the rate may be correct. The Income Tax Act specifically provides conversion rate as adopted by the SBI. To be on safe side, pl get the conversion rate from any foreign exchange branch of the SBI duly certified for converting foreign exchange into INR