Hi,
I am a pr in canada and had bought some property in Delhi, India.
Since it has appreciated in value substantially, I am selling it. I understand that I have to pay 20% on the capital gain on the property in india.
When i transfer this profit to canada, do I have to AGAIN pay tax in canada on this income.
I have already paid tax on capital gain in india.
Isn't there some double taxation treaty between india and canada.
Thanks
Sunny
Quote:
Originally posted by sunny45
Hi,
I am a pr in canada and had bought some property in Delhi, India.
Since it has appreciated in value substantially, I am selling it. I understand that I have to pay 20% on the capital gain on the property in india.
When i transfer this profit to canada, do I have to AGAIN pay tax in canada on this income.
I have already paid tax on capital gain in india.
Isn't there some double taxation treaty between india and canada.
Thanks
Sunny
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YOU HAVE TO BE A SAVVY INESTOR TO SURVIVE IN THIS WORLD. and YOU CAME TO THE RIGHT WEBSITE, THE CANADIAN DESI....
I am not your accountant nor your Auditor. So, your payment of 20% of gains in taxes rests squarely upon your shoulders and it is yours alone and you engineered it. You only pay the 20%, ONLY if you want to bring ALL of it out of India.
When you sell your property after holding the same for THREE years or longer, then LTCG Kicks in. If the property was held for less than Three years then you will have to pay Capital Gains taxes there, which you already paid. So, you held it for less than Three years, that is what I think happened.
Here is an example : Say you bought the property FIVE Years ago for 50 Lakhs and stayed in it for three years and then moved to Canada Two years ago and sold it recently for 80 lakhs, then you capital gains could be sheltered. More on it if you want to know. It is never too late.
Now when you left India Two years ago the value say was 100 Lakhs, 1C then when you sold it you lost 20 lakhs. You can get an assessor or an appraiser there in India to write out an estimated value of the property in a proper form THE VALUE OF WHICH, ON THE DAY OF DEPARTURE, AS ONE CRORE, and have it in your files and your loss of 20 lakhs can be claimed here in Canada as a Capital Loss. So, you pay no taxes here. If you can find from an AUDITOR, how you can get it back, then, it will be a bonus situation and it is possible. So, try to work on that and get the money back from the Revenue Services in INDIA, there.
SO, NO TAXES TO PAY HERE and you can bring any amont of money into CANADA, through the legal channels, any time. NO TAXES on that also.
Your auditor does know about the DTAA and all of them are smart as a whip there. So, get cracking on it.
FH.
The Canada Revenue Agency Only considersa the Value of Stocks, Bonds, any Fixed Deposits and Property etc., on the day you landed here in Canada as a PR, not the value of it before or after. Value of Stocks and bonds etc., can be obtained from News papers. But for Property, you will have to get it from an Appraiser and you pay for it. And pay him well. fh