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Address of Cisco Headquarters

Cisco Systems Inc., Corporate Headquarters, 170 West Tasman Dr., San Jose, CA 95134, USA

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

115 . [(1)] The rate of exchange for the calculation of the value in rupees of any income accruing or arising or deemed to accrue or arise to the assessee in foreign currency or received or deemed to be received by him or on his behalf in foreign currency shall be the telegraphic transfer buying rate of such currency as on the specified date.

Explanation : For the purposes of this rule,—

	(1)	 	"telegraphic transfer buying rate" shall have the same meaning as in the Explanation to rule 26;
	(2)	 	"specified date" means—
		(a)	 	in respect of income chargeable under the head "Salaries", the last day of the month immediately preceding the month in which the salary is due, or is paid in advance or in arrears;
		(b)	 	in respect of income [by way of] "interest on securities", the last day of the month immediately preceding the month in which the income is due;
		(c)	 	in respect of income chargeable under the heads "Income from house property", "Profits and gains of business or profession" [not being income referred to in clause (d)] and "Income from other sources" (not being income by way of dividends [and "Interest on securities"]), the last day of the previous year of the assessee;
		(d)	 	in respect of income chargeable under the head "Profits and gains of business or profession" in the case of a non-resident engaged in the business of operation of ships, the last day of the month immediately preceding the month in which such income is deemed to accrue or arise in India ;
		(e)	 	in respect of income by way of dividends, the last day of the month immediately preceding the month in which the dividend is declared, distributed or paid by the company;
		(f)	 	in respect of income chargeable under the head "Capital gains", the last day of the month immediately preceding the month in which the capital asset is transferred :]
 	[Provided that the specified date, in respect of income referred to in sub-clauses (a) to (f) payable in foreign currency and from which tax has been deducted at source under rule 26, shall be [the date on which the tax was required to be deducted] under the provisions of the Chapter XVII-B.]
[(2) Nothing contained in sub-rule (1) shall apply in respect of income referred to in clause (c) of the Explanation to sub-rule (1) where such income is received in, or brought into India by the assessee or on his behalf before the specified date in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973).]

Need to fill From 67 to get tax relief under DTAA on income from foreign sources FSI/Dividends etc.

Schedule FA

The reporting of foreign currency or assets in the ITR of FY 2020-21 will depend upon the accounting periods of the foreign country as below:

  • 1st January 2020 – 31st December 2020: If the foreign assets, foreign accounts, etc. are acquired between 1st January 2020 – 31st December 2020, and the assets/accounts belong to the foreign country/jurisdiction where calendar year is considered for the closing of accounts and return filings;
  • 1st April 2020 – 31st March 2021: If the foreign assets, foreign accounts, etc. are acquired between 1st April 2020 – 31st March 2021, and the assets/accounts belong to the foreign country/jurisdiction where the financial year is considered for the closing of accounts and return filings,
  • That period of 12 months, ending on any day succeeding 1st April 2020, in respect of foreign assets, accounts held in the foreign country/jurisdictions where the other 12 months accounting or tax filing period is adopted.

Rate of exchange for conversion

  • For conversion of the foreign asset or foreign-sourced income in Indian currency, the rate of exchange shall be “telegraphic transfer buying rate” as on date of peak value of investment.
  • “Telegraphic transfer buying rate” is the exchange rate adopted by the State Bank of India for buying such currency, where such currency is made available to the bank through a telegraphic transfer.
  • Peak and Closing values should be according to accounting period.
  • US accounting period is calendar year.

Open Questions:

  • What dividend income to show if you want DTAA? Since the tax from 1024S is for calendar year?
  • How to divide the divdend income in schedule FA on per vesting basis?

Some Important Links

  • Tax Implications for Indian Residents Investing in the US Stock Market
  • What is the W-8BEN Form for Foreigners Investing in US Stocks
  • How are Dividends of International or Foreign Stocks taxed? How to show in ITR
  • RSU of MNC, perquisite, tax , Capital gains, ITR
  • Foreign Income and Taxes - Blog by Quicko
  • Reporting of Foreign Assets & Income in Income Tax Return
  • Reporting rsu and espp in schedule fa - fy 2018-19 - Income Tax | ITR
  • InstructionITR2_2015_ENG.pdf
  • Employee Stock Purchase Plan or ESPP
  • Are ESPP,ESOP in MNC Foreign Assets or Not?
  • How to fill Schedule FA (AY20-21)
  • Forex Card Rates 2021 – Maneesh K. Singh & Co.
  • Financial Benchmarks India Pvt Ltd
  • Getting ESOP as salary package? Know about ESOP Taxation
  • Resident Indians Holding U.S. Stocks Should Disclose Details in Indian ITR-