Posted on: 31-05-10 21:50:16
Quote:
Originally posted by KumarM
Sorry for any confusion. We technocrats sometimes dont know how to write.
My friend has to go back to India and will collect his govt pension (not CPP). He needs to sell his house here in Canada in the next couple of weeks (we met with a RE agent this evening to discuss). I think he will have abt $50k (profit) after paying off the mortgage, penalty, comission, etc.
I am wondering,
1. If he can take all that money to India with him?
2. Is there any restriction on the money carried from here to India?
3. Now the dilemma is the capital gains tax. Should he declare that he is leaving Canada this year or should he wait till next year to declare that he is leaving. Anyone can sell their house and live in a rental place. Would that argument work in his favour?
(I am just helping him out in this issue as he has tonnes of things on his mind right now)
KM
PS - I have explained abt my discussion with CRA reg tax on non residents (residing in India) in another thread here.
1. He can take the money with him but at Indian customs he may have to declare the amount he has in Cash or otherwise. The better way is to open an NRE account and transfer money there before leaving Canada.
2. No. He can legally transfer any (legal) amount to his NRE account from here and there is no problem from any side.
3. If he is selling his principal residence then there is no capital gain tax payable. In fact he does not even have to show this on his tax return.
4. As stated earlier, he should get decision on his residential status from CRA to avoid any complications.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thx Pramod. Much appreciated.
KM
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The best way to find yourself is to lose yourself in the service of others.”
Mahatma Gandhi
