Taxation of foreign exchange fluctuation
(1)
Subject to the provisions of section 42section 42 any gain or loss arising on account of change in foreign exchange rates on foreign currency transactions shall be treated as income or loss, and shall be computed as per the income computation and disclosure standards notified under section 276section 276(2).
(2)
The provisions of sub-section (1) shall be applicable to all foreign currency transactions including—
(b)
translation of financial statements of foreign operations;
(c)
forward exchange contracts; and