I have a simple question regarding taxation:
1. Sent some funds to India and invested in FDs.
2. The tax was deducted at source on the interest received on FDs by the Indian bank.
3. Do I have to report the amount invested + interest on filing tax return in Canada. If yes, is there tax deduction here also.
The same question is for investment in NRE.
Hopefully this is useful to you or anyone else who stumbles upon this.
Generally speaking, if you are a resident of Canada for tax purposes, you must report income earned from anywhere in the world.
You do not have to report foreign property, unless it exceeds $100,000 at any time during the year.
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Madan Chartered Accountant team
http://www.madanca.com" rel="nofollow">LINK
Quote:
Originally posted by hazelnut
I have a simple question regarding taxation:
1. Sent some funds to India and invested in FDs.
2. The tax was deducted at source on the interest received on FDs by the Indian bank.
3. Do I have to report the amount invested + interest on filing tax return in Canada. If yes, is there tax deduction here also.
The same question is for investment in NRE.
Good point about the interest, Full House.
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Madan Chartered Accountant team
http://www.madanca.com" rel="nofollow">LINK
Quote:
Originally posted by Full House
Now to the tricky part, say, when you sent the money if the Dollar gave you 55 rupees and it is currently at 65 to a dollar, and you having lost 10 rupees on each, can claim the devaluation of the deposit and also claim a LOSS, if you know how, you can do it all by yourself. Also you can use the help of an accountant to help yoou with the calculations, while filing your tax return.
FH.
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Dimple2001
In addition to what dimple2001 said, make sure to keep documentation to provide proof for which exchange rates you used for the transactions. The CRA often asks for supporting documentation.
A PDF of the BOC average/spot exchange rates should be sufficient.
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Madan Chartered Accountant team
http://www.madanca.com" rel="nofollow">LINK
Thanks ..wanted to know how DT works , for Canadian citizens ( PIO or OCI ) , who are returning to India to work in India.
Not necessarily going back for good, but settling in India with a Canadian Citizenship and Passport, but maintaining Canadian citizenship and keeping the door open to come back to Canada if the need arises.
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