Posted on: 07-01-09 18:03:22
I would be receiving some gift money amounting say INR 2lacs from India through my father.
Will this gift be taxable in my hands in Canada?
Is there a limit on the amount of gift money a canadian resident can receive from a close relative outside canada?
Thank you
Quote:
Originally posted by Rav09
I would be receiving some gift money amounting say INR 2lacs from India through my father.
Will this gift be taxable in my hands in Canada?
Is there a limit on the amount of gift money a canadian resident can receive from a close relative outside canada?
Thank you
Most Gifts and inheritances are not taxed in Canada.
Here is a list of amounts that are not taxed by the CRA.
Amounts that are not taxed
You do not have to include certain amounts in your income, including the following:
any GST/HST credit or Canada Child Tax Benefit payments, as well as those from related provincial or territorial programs;
child assistance payments and the supplement for handicapped children paid by the province of Quebec;
compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
lottery winnings;
most gifts and inheritances;
amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;
most amounts received from a life insurance policy following someone's death; and
most payments of the type commonly referred to as strike pay you received from your union, even if you perform picketing duties as a requirement of membership.
Note
Income earned on any of the above amounts (such as interest you earn when you invest lottery winnings) is taxable.
For more information follow this http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-02-08e.html#P511_53054
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
If you are inheriting cash do you need to submit a will?
Will CRA not ask you for the source of the funds?
Quote:
Originally posted by amish2
If you are inheriting cash do you need to submit a will?
Will CRA not ask you for the source of the funds?
Inheriting cash in India or in Canada?
If it is India, it would have to be remitted to Canada by bank transfer. If it is in Canada, though unlikely but possible, may come to you through will. However, in any case, you would not report the amount in your tax return but you have to have the proof of gift or inheritance in case CRA wants to make sure that it is 'actually a gift or inheritance' and 'not your income'.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
