We address the problem of exact signal recovery in frequency domain optical coherence tomography (FDOCT) systems. Our technique relies on the fact that, in a spectral interferometry setup, the intensity of the total signal reflected from the object is smaller than that of the reference arm. We develop a novel algorithm to compute the reflected signal amplitude from the interferometric measurements. Our technique is non-iterative, non-linear and it leads to an exact solution in the absence of noise. The reconstructed signal is free from artifacts such as the autocorrelation noise that is normally encountered in the conventional inverse Fourier transform techniques. We present results on synthesized data where we have a benchmark for comparing the performance of the technique. We also report results on experimental FDOCT measurements of the retina of the human eye.