@GeoffreyG How would your answer change if the interest is earned from a savings account? Suppose you convert USD to rupees and earn 20% interest, but at the same time rupee is devalued 20% against the USD, so at the end of the year there is 20% interest income which is completely neutralized by 20% depreciation of the rupee, so there is no net income in USD terms.
In this case we pay the tax on interest and ignore the loss due depreciated rupee?
