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  Canada > About Canada > Accounting and Taxation > Transferring money from India to Canada...
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Transferring money from India to Canada...

 
sansub
Junior Desi
Member since: Jan 10




Posts: 2
Location: GTA

Transferring money from India to Canada...
Hi,

I have a property in India which I am planning to sell soon. It's net worth is < 100K Can$. I am getting conflicting information from many people on how I can transfer the money from India to Canada. I was told that there is a restriction on how much money you can take away from India. Could someone please provide me the following information if you have going thro' this before?

1. Is there any maximum limit on how much you can transfer from India (as per the Indian law)?

2. Is there a cheap and less hassle way to transfer money (60-80K Can$) from India to canada?

I will be filling my tax return for this property sale in India so I am not concerned about the tax part. But my main issue is how to transfer the money easily and effectively. I would appreciate any input in this regards (bank recommandation, process etc).

Thanks,
San.


 
Last edited by:
Post ID: 157335 28-01-10 17:11:11
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JRF
Senior Desi
Member since: Jul 04




Posts: 1523
Location: GTA, Ontario



I've pasted some information from RBI link.
Go to the pasted link below and you would see the questions and answers.


RBI Link - LINK

1. Can one obtain additional foreign exchange for medical treatment outside India?

Authorized dealers may release foreign exchange upto USD 100,000 or its equivalent to resident Indians for medical treatment abroad on self declaration basis of essential details, without insisting on any estimate from a hospital/doctor in India/abroad. A person visiting abroad for medical treatment can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad. This release of foreign exchange of USD 100,000 is to meet the expenses involved in treatment and it is in addition to the amount of USD 25,000 released for maintenance expenses of a patient going abroad for medical treatment or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/check-up.


2. How much exchange is available for studies outside India?

Authorized dealers may release foreign exchange for an amount of USD 100,000 per academic year or the estimate received from the institution abroad, whichever is higher. Students going abroad for studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA. In addition, they can receive remittances up to USD 100,000 from close relatives (as defined in Section 6 of the Companies Act,1956) from India on self-declaration, towards maintenance, which could include remittances towards their studies also. Educational and other loans availed of by students as resident in India can be allowed to continue. There is no dilution in the existing remittance facilities to students in regard to their academic pursuits.


3. How much foreign exchange is available to a person going abroad on employment?

Person going abroad for employment can draw foreign exchange up-to USD100,000 from any authorised dealer in India on the basis of self-declaration.


4. How much foreign exchange is available to a person going abroad on emigration?

Person going abroad on emigration can draw foreign exchange upto USD100,000 on self- declaration basis from an authorized dealer in India. This amount is only to meet the incidental expenses in the country of emigration. No amount of foreign exchange can be remitted outside India to become eligible or for earning points or credits for immigration. All such remittances require prior permission of the Reserve Bank.


5. How much foreign exchange can a resident individual send as gift / donation to a person resident outside India?

Limit of USD 200,000 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 200,000 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.

-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
LINK

 
Post ID: 157339 28-01-10 18:56:21
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JRF
Senior Desi
Member since: Jul 04




Posts: 1523
Location: GTA, Ontario


Also read this CRA link - LINK

Excerpts:
Do you have to file this statement?
Canadian resident individuals, corporations, and trusts, as well as partnerships, who held certain property outside Canada with a total cost
amount of more than $100,000 at any time in the tax year, have to file Form T1135, Foreign Income Verification Statement.

You do not have to report information about property held for personal use. This includes vacation property used by you primarily as a personal residence, as well as listed personal property such as works of art, jewellery, rare folios, rare manuscripts, rare books, stamps, and coins. See the latest version of Interpretation Bulletin IT-332, Personal-Use Property, for more details about personal property. You also do not have to report property used or held by you exclusively in an active business.

Q. I own a condominium in Florida that has a cost amount of $120,000. Am I required to file Form T1135 if the property is:

(a) only for personal use?
(b) rented out for eight months of the year with a reasonable expectation of profit and kept for personal use the other four months?
(c) rented out year round with a reasonable expectation of profit?


A. If the property is personal use property (i.e., property owned by you that is used by you or someone related to you primarily for personal use and
enjoyment) you DO NOT have to report the property on Form T1135. As a result, in situation (a), you would not need to report the condominium since
it is held primarily for personal use and enjoyment.

In situations (b) and (c), the property is an income-earning investment property that is not held primarily for personal use and enjoyment. As a
result, since the cost amount is more than $100,000, you have to file Form T1135.


You DO NOT need to report properties if they are

property used or held exclusively in the course of carrying on an active business;
personal-use property (i.e., property used primarily for personal use and enjoyment, such as a vacation property used primarily as a personal
residence);
an interest in a U.S. Individual Retirement Account (IRA);
shares of the capital stock, or indebtedness, of a non-resident corporation that is a foreign affiliate;
an interest in, or indebtedness, of a non-resident trust that is a foreign affiliate;
an interest in a non-resident trust that neither you nor a person related to you had to pay for in any way;
an interest in a non-resident trust principally providing superannuation, pension, retirement or employee benefits primarily to non-resident
beneficiaries, that does not pay income tax in the taxing jurisdiction where it is resident; or
an interest in, or a right to acquire any of the above-noted excluded foreign property.


-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
LINK

 
Last edited by: JRF on 28-01-10 19:00:43
Post ID: 157340 28-01-10 18:59:49
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JRF
Senior Desi
Member since: Jul 04




Posts: 1523
Location: GTA, Ontario




As far money transfer, you should be able to do it from most of the banks. Eg.., IOB.
Honestly, some banks manager may not have the visibility to the RBI provisions, do the research, send them the details and initiate the transfer peacefully.

-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
LINK

 
Post ID: 157341 28-01-10 19:04:06
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mkannuri
Senior Desi
Member since: Nov 06




Posts: 341
Location:


Quote:
Originally posted by JRF



As far money transfer, you should be able to do it from most of the banks. Eg.., IOB.
Honestly, some banks manager may not have the visibility to the RBI provisions, do the research, send them the details and initiate the transfer peacefully.



Thanks JRF for this valid information. It looks like our parents can transfer upto 200K USD...just like that...wow..thats interesting.
Btw...Is that simple to go to a bank and tell them that they wanted to gift 200K USD to their children abroad or should they submit any forms or source of the money or any investigation?
appreciate your feedback.

-----------------------------------------------------------------
MRK

 
Post ID: 157348 28-01-10 21:42:48
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JRF
Senior Desi
Member since: Jul 04




Posts: 1523
Location: GTA, Ontario



Try to talk to the Bank Manager that you know of or ask your parents check with the bank manager they bank with. You could educate them pointing to the RBI guidelines and inturn they could check with their Super.

Also read this part on receiving Gifts - LINK



Quote:
Originally posted by mkannuri


Thanks JRF for this valid information. It looks like our parents can transfer upto 200K USD...just like that...wow..thats interesting.
Btw...Is that simple to go to a bank and tell them that they wanted to gift 200K USD to their children abroad or should they submit any forms or source of the money or any investigation?
appreciate your feedback.


-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
LINK

 
Post ID: 157352 28-01-10 22:19:24
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lali
Senior Desi
Member since: Apr 05




Posts: 153
Location: Toronto


Hi Sansub & Mkannuri

I have sent you PM.

-----------------------------------------------------------------
Regards

Lali

 
Post ID: 157361 28-01-10 23:46:13
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sansub
Junior Desi
Member since: Jan 10




Posts: 2
Location: GTA


JRF, Thanks for the response. I will check the RBI link you posted.

lali, I have send a response to your private message. Please check it out.


 
Post ID: 157373 29-01-10 11:47:09
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desi_babu
Junior Desi
Member since: Mar 13




Posts: 1
Location:


Recently I have inherited a land portion in India after my grand mother passed away. I currently live in Canada from past few years with Canadian citizenship. I intend to sell my portion of land and bring funds to Canada. I have done the land evaluation from the date it was transferred to my name. However I struggle with the following:

1. When the land is sold, funds will come in two shapes. Cheque and cash. The amount on the cheque I believe will be relfected on the Sale deed/registeration of the land. Now:
a) Would I have to pay any capital gain on the sale of the land.
b) What about funds paid in cash? I won't be able to show these funds in any bank, and thus can create problem in bringing these funds to Canada.

2. What is the best way to bring all the funds (Cheque and cash) to Canada without much hassle and loosing any money in transaction fees?

Any advice you can give would be appreciated. Thanks in advance.


 
Post ID: 204281 15-03-13 13:10:58
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Nandyal
Junior Desi
Member since: Mar 13




Posts: 1
Location:


I sent money by wire transfer to Toronto Gold Bullion as I ordered some gold coins. They say it takes 10 days before they can issue the coins. Is this company a genuine or a fraud business. How should I deal with them?

 
Post ID: 204283 15-03-13 17:17:47
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Contributors:
betul20(1)  desi_babu(1)  JRF(4)  lali(1)  mkannuri(1)  Nandyal(1)  sansub(2)  
 
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