Posted on: 30-03-07 18:41:34
I have been in Canada for last 3 and half years and I am filing my return since 2004. My income in canada is about 30000 dollars per annum every year for last 3 years during which I did not have any income in India. During 2003 I was doing a job in India and my income was about 70000 INR which I had reported during my first return. But Now I want to transfer about 35 to 45 lacs(Rupees) from India which is owned by my parents and other family members to start a business or buying a property. what is the legtitimate way to do that and how much tax I have to pay if I transfer
Quote:
Originally posted by chekram_04
I have been in Canada for last 3 and half years and I am filing my return since 2004. My income in canada is about 30000 dollars per annum every year for last 3 years during which I did not have any income in India. During 2003 I was doing a job in India and my income was about 70000 INR which I had reported during my first return. But Now I want to transfer about 35 to 45 lacs(Rupees) from India which is owned by my parents and other family members to start a business or buying a property. what is the legitimate way to do that and how much tax I have to pay if I transfer
Your parents can send up to US Dollars 50,000 as a gift to you.
Please see FAQ on Reserve Bank of India's website http://www.rbi.org.in/scripts/FAQView.aspx?Id=53
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18. How much foreign exchange can a resident individual send as gift / donation to a person resident outside India?
Limit of USD 50,000 per financial year under the Liberalised Remittance Scheme would also include remittances towards gift and donation by a resident individual. Accordingly, under the Scheme, any resident individual, if he so desires, may remit the entire limit of USD 50,000 in one financial year as gift to a person residing outside India or as donation to a charitable/educational/ religious/cultural organization outside India. Remittances exceeding the limit will require prior permission from the Reserve Bank.
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If this money has not been earned by you after becoming a Canadian PR or by disposing a property owned by you and your parents send this money as a gift through proper banking channel, then you do not have to include this in your Canadian Income and you do not have to pay any tax.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Hi, Pramod
Thank you very much for your valuable information.
