Rate of exchange for conversion into rupees of income expressed in foreign currency

The rate (sub-rule 1). Income accruing or arising, or deemed to, in foreign currency, or received or deemed received in foreign currency, is converted at the telegraphic transfer buying rate of that currency on the specified date. That term has the meaning in rule 207.

Specified dates (sub-rule 2(b)(i)).

• Salaries: last day of the month immediately preceding the month in which salary is due, or is paid in advance or in arrears.
• Interest on securities: last day of the month immediately preceding the month in which the income is due.
• House property, business or profession (other than the shipping case below) and other sources (excluding dividends and interest on securities): last day of the assessee's tax year.
• Business income of a non-resident operating ships: last day of the month immediately preceding the month in which the income is deemed to arise in India.
• Dividends: last day of the month immediately preceding the month in which the dividend is declared, distributed or paid.
• Capital gains: last day of the month immediately preceding the month in which the capital asset is transferred.

Income from which tax was deducted (sub-rule 2(b)(ii)). For income payable in foreign currency from which tax was deducted under rule 207, the specified date is the date on which tax was required to be deducted under Chapter XIX-B.

Exception (sub-rule 3). Sub-rule (1) does not apply to income in the third category above (house property, business or profession, and other sources) where it is received in, or brought into, India by or for the assessee before the specified date in accordance with the Foreign Exchange Regulation Act, 1973.