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.

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


RBI Link - http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

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.
http://www.youtube.com/watch?v=_yK1i9cLAMM

Also read this CRA link - http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf

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.
http://www.youtube.com/watch?v=_yK1i9cLAMM

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.
http://www.youtube.com/watch?v=_yK1i9cLAMM

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.

---

-----------------------------------------------------------------
MK

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 - http://www.taxtips.ca/personaltax/giftsandinheritances.htm

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.
http://www.youtube.com/watch?v=_yK1i9cLAMM

Hi Sansub & Mkannuri

I have sent you PM.

-----------------------------------------------------------------
Best regards

Lali