Posted on: 06-05-07 09:43:28
Quote:
Originally posted by desertsstorm
Thanks for input and some valueable advise. Goldie Could you tell me please what is the best way to bring money in one go. Is it demand draft or cash or travel cheques?
Whole amount..................Cash..............??????????
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
I am a Canadian resident and have put a lot of money in real estate in India since I became a Canadian resident. Now I see there is a capital gain on my property. Once I sell it I have to pay taxes to the Indian government. I am also planning to transfer that money to Canada. I just want to confirm if I have to pay the tax to CRA also. If so then I don't think any investor will invest in India. I can carry dollars to India without paying any tax over there. Why can't I bring dollars in Canada on which I have already paid tax in India.
I just want to confirm if there will be a double taxation while bringing money to Canada.
Hi Desertstorm,
I do bank to bank electronic transfer. You'll have to give your Canadian A/C # and address of the bank, to your Bank in Dubai. If you have the swift code # of your bank in Canada you can give that too.
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goldie
Quote:
Originally posted by web2000
I am a Canadian resident and have put a lot of money in real estate in India since I became a Canadian resident. Now I see there is a capital gain on my property. Once I sell it I have to pay taxes to the Indian government. I am also planning to transfer that money to Canada. I just want to confirm if I have to pay the tax to CRA also. If so then I don't think any investor will invest in India. I can carry dollars to India without paying any tax over there. Why can't I bring dollars in Canada on which I have already paid tax in India.
I just want to confirm if there will be a double taxation while bringing money to Canada.
If you read my post above, you will notice that whether or not you bring dollars to Canada from India, once you sell your real estate and make profit, you are liable to paying taxes in Canada.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
What you are saying that if I have made a profit of $50000 from sale of property in India, then I will end up paying 30% to Indian government and 30% to Canadian government and I will be left with 40% of the profit. If this is the case then no one will be willing to invest in India. Dollars can flow in to India and there is no way to get those back to Canada unless I pay double tax.
There could be another option if the sale could be done in such a way that money is considered as a gift given to me. As far as I know there is no gift tax in Canada.
Quote:
Originally posted by web2000
What you are saying that if I have made a profit of $50000 from sale of property in India, then I will end up paying 30% to Indian government and 30% to Canadian government and I will be left with 40% of the profit. If this is the case then no one will be willing to invest in India. Dollars can flow in to India and there is no way to get those back to Canada unless I pay double tax.
There could be another option if the sale could be done in such a way that money is considered as a gift given to me. As far as I know there is no gift tax in Canada.
India and Canada have a tax treaty to avoid double taxation.
Hence, if you have a capital gain from selling a property in India and you are a Canadian Resident for Tax purposes, you would have to show the profits as capital gains in your Canadian Tax Return and whatever taxes you pay in India, you would claim a tax credit for the same. Make sure to have all the requisite documents showing the purchase, sale, expenses in doing these transactions and taxes paid in India so that you can claim the tax credit in Canadian Tax Return. Better still contact an accountant and he/she would guide you.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
That is what I wanted to confirm.
One more question I would like to ask is if I get money from my parents as a gift, will that money be taxable in Canada. My parents have already paid tax in India and the gift is the result from their savings. As far as I know there is no tax paid on the gifts received in Canada.
Can someone shed light on it?
