Rule 207 sets the telegraphic transfer buying rate on the date tax must be deducted as the conversion rate for TDS on foreign-currency income payable outside India or to or by an IFSC unit, and defines that rate.
207
Rules 2026 · Rule 207
Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency
Rules 201-260
The rate (sub-rule 1). For deduction of tax at source, income payable in foreign currency is converted into rupees at the telegraphic transfer buying rate on the date on which tax is required to be deducted under Chapter XIX-B. If no rate is published on that date, the last published rate may be taken.
Income covered (sub-rule 2). Income payable:
Definitions (sub-rule 3). "International Financial Services Centre" and "Unit" have the meanings in sections 2(q) and 2(zc) of the Special Economic Zones Act, 2005. The "telegraphic transfer buying rate" of a foreign currency is the rate or rates adopted by the State Bank of India for buying that currency, having regard to the Reserve Bank of India's guidelines, where the currency is made available to that bank by telegraphic transfer.