Posted on: 19-09-06 14:25:30
A resident of Canada is required to pay taxes on his world-wide income - it does not matter that the property is located in India and you have acquired it prior to becoming a Canadian resident.
Accordingly, you will have to include in income 50% of your capital gains from disposition of Indian property in your Canadian tax return. If you have paid for any capital gains tax in India, then you may be elgible to claim a tax credit on your Canadian tax return (note that I don't want to give you the impression that your Canadian tax liability on capital gains can be offset exactly by what you paid in India - it's not that straightforward).
While Daks has given a succint and correct reply, let me add one more thing.
When an immigrant lands in Canada, all is assets on that day are deemed to be disposed off and then re-aquired on that day. This means that if one had a property which was originally aquired, say at Rs 20 lakhs and the day he landed in Canada it was valued at 30 lakhs, his cost of aquisition for Canadian purposes will be 30 lakhs and not 20 lacs.
However, one has to also keep in mind that in India, most of the time you do not declare the actual sale value (for tax purposes etc.) and a lot of money transacts in cash. However, that cash when brought into canada will not be deemed as capital gain since you have no proof of that being so. In such a case, it will be treated as normal income and taxed at such, and not at 50% as Daks has mentioned for Capital gains.
By the way, the monies brought by me were never from India ( I left India with a savings of Rs 2500 in 1984!!!), so have no idea about Indian authorities clearing the payment.
Chandresh
-----------------------------------------------------------------
Chandresh
Advice is free – lessons I charge for!!
I became permanent resident of Canada recently and returned back to continue my service in middle east. We may move to Canada permanently after two or three years.
I did not apply for SIN card to avoid filing tax returns. Thanks to Chandresh for this advise in several of his postings.
I declared all our jewellery in "Goods to follow list" during landing. I did not find any place on "Goods to Follow" form to fill the details of assets, I own in India.
I own assets in the form of Residential flat, Agriculture Lands, residential Plots, Bank balance, shares etc in India. Their combined market value is much higher than C$100,000.
Can someone advise me when and how I should declare my assets in India?
- erra
Quote:
Originally posted by erra
Can someone advise me when and how I should declare my assets in India?
- erra
This is done at the time of filing your tax returns - every year that you possess assets more than 100 k. There is a separate form for it (I do not remember its number) which asks you to declare in form of blocks - like more than 100k, 300k, 500k etc. and in different types of assets. So you can write something like this ;
Real Property : >300k
Funds : >100k
Shares in foreign companies: <100k
the coloumns are provided in the form and all you have to do is to check mark the correct place. Also, at the end of the form it also asks the amount of income earned from those foreign assets - which should match with your regular tax return details.
Chandresh
-----------------------------------------------------------------
Chandresh
Advice is free – lessons I charge for!!
Chandresh,
Thanks for the information.
- erra
