Section 52 — Rate of exchange for conversion of rupees into foreign currency and reconversion of foreign currency into rupees for purpose of computation ofcapital gains under section 72

(1) For the purpose of computing capital gains arising from the transfer of a capital asset being shares in, or debentures of, an Indian company, in the caseof an assessee who is a non-resident, the rate of exchange shall be, in the circumstances referred to in column B of the following table, as per column Cthereof:—
TABLE
Sl.No. Circumstances Rate of Exchange
A B C
1. For converting the cost of acquisition of the capital asset,The average of the telegraphic transfer buying rate and telegraphic transfer selling rateof the foreign currency initially utilised in the purchase of the said asset, as on the dateof its acquisition.
2. For converting the expenditure incurred wholly and exclusivelyin connection with the transfer of the capital asset referred to inSl. No. 1,
The average of the telegraphic transfer buying rate and telegraphic transfer selling rateof the foreign currency initially utilised in the purchase of the said asset, as on the dateof transfer of the capital asset.
3. For converting the full value of consideration received oraccruing as a result of the transfer of the capital asset referredto in Sl. No. 1,
The average of the telegraphic transfer buying rate and telegraphic transfer selling rateof the foreign currency initially utilised in the purchase of the said asset, as on the dateof transfer of the capital asset.
4. For converting the capital gains computed in the foreigncurrency initially utilised in the purchase of the capital assetinto rupees,
The telegraphic transfer buying rate of such currency, as on the date of transfer of thecapital asset.
(2) For the purposes of this rule,—
(a) "telegraphic transfer buying rate" shall have the meaning assigned to it in rule 206; and
(b) "telegraphic transfer selling rate", in relation to a foreign currency, means the rate of exchange adopted by the State Bank of India constituted under theState Bank of India Act, 1955 (23 of 1955), for selling such currency where such currency is made available by that bank through telegraphic transfer.