Prithiviraj Nathan on Income Tax Bill 2025: Forex Adjustments to Benefit Non-Resident Investors
The Income Tax Bill 2025 has introduced a key provision under Section 42, titled ‘Variation in Liability,’ aimed at providing relief to non-residents investing in unlisted shares. This amendment allows non-residents to offset foreign exchange fluctuations, ensuring a more accurate tax assessment.
Commenting on this development, Prithiviraj Senthil Nathan stated, “The introduction of the ‘Variation in Liability’ provision under Section 42 enables non-residents to offset forex fluctuations, ensuring a more accurate tax assessment.” He further added, “This provides flexibility to hedge against forex volatility and minimises unexpected tax liabilities.”
This amendment is expected to bring greater certainty to cross-border investments, particularly benefiting foreign investors navigating currency risks.
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