Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency [ Rule 26 of Income Tax Rule] - Income Tax - Ready Reckoner - Income Tax

Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency [ Rule 26 of Income Tax Rules ] With Effect From 17.08.2023 For the purpose of deduction of tax at source on any income payable in foreign currency , the rate of exchange for the calculation of the value in rupees of such income payable - (i) to an assessee outside India; (ii) to a Unit located in an International Financial Services Centre; (iii) by a Unit located in an International Financial Services Centre to an assessee in India, shall be the telegraphic transfer buying rate of such currency as on the date on which the tax is required to be deducted at source under the provisions of Chapter XVIIB (i.e. Section 192 to Section 206B) by the person responsible for paying such income Upto 16.08.2023 Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency. For the purpose of deduction of tax at source on any income payable in foreign currency , the rate of exchange for the calculation of the value in rupees of such income payable (i) to an assessee outside India shall be the telegraphic transfer buying rate of such currency as on the date on which the tax is required to be deducted at source under the provisions of Chapter XVIIB (i.e. Section 192 to Section 206B) by the person responsible for paying such income. Explanation : For the purposes of this rule, telegraphic transfer buying rate, in relation to a foreign currency, means the rate or rates of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955, for buying such currency, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency, where such currency is made available to that bank through a telegraphic transfer.