Rules regarding valuation of foreign exchange !

Rules regarding valuation of foreign exchange !

I am non resident. My earnings are in Euro. Will the earning be converted in Indian Rupee and then gains or income will be computed? Please guide me.

See under the Indian law, the rate of exchange to be adopted for valuation of the gains or income are clearly prescribed under Rule 115 of Income Tax Rule .It provides that any income arising or accruing in Foreign exchange should be converted in rupees by adopting rate of exchange adopted by State Bank of India for buying the currency.

Moreover , the date on which the foreign exchange should be converted for valuation in Indian Rupees are different for different types of income. These are :

1. Salary-last date of the month immediately preceding the month in which salary is due or payable or paid in arrear.

2. Interest on securities- las