Posted on: 27-04-14 21:38:18
My mother has pension income from India. I can get some benefits as she is living with me and dependent upon me as she is over 65 years of age. She will be filing her first return in Canada. I have two questions:
-I just want to know on which line she should declare her foreign pension (On line 115 or 130). -She does not have any kind of slips from India to show her pension income. I an wondering if CRA will request such kind of slips for the sources of income.
Quote:
Originally posted by reshab
My mother has pension income from India. I can get some benefits as she is living with me and dependent upon me as she is over 65 years of age. She will be filing her first return in Canada. I have two questions:
-I just want to know on which line she should declare her foreign pension (On line 115 or 130). -She does not have any kind of slips from India to show her pension income. I an wondering if CRA will request such kind of slips for the sources of income.
He Reshab,
Please read from these links from CRA's website and it would be clear for you.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/115/frgn/menu-eng.html
http://www.treaty-accord.gc.ca/text-texte.aspx?lang=eng&id=102409
You do not need to have a slip from India and you can convert the total amount received in to Canadian currency using the average rate from Bank of Canada's website and you would be fine. And most likely she will not have to pay any taxes on that income because of the Tax Treat between India and Canada as per the second link.
As she is over 65 years and residing with you, You can claim a care giver expense on line 315 on Schedule 1 of your tax return.
-----------------------------------------------------------------
Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks Pramod ji
I did follow the links you provided and claiming caregiver tax credit. I just wanted to confirm that they will not ask any slip for the sources of income.
Since it is her first return and so she will have to send a paper return and cannot use NETFILE. But I am using NETFILE and I hope that CRA will not create any issue as paper return may take time to get there and processed, but I am filing online and I don't know if it will have any impact on the refund I may get as CRA may try to find her return before processing my return. I hope it will be fine.
NOTE: Another thing I wanted to ask if she can claim GST/PST credit. She was landed before 2013 and then went back. When I say yes on tax software it does show some credit she will get. Is it OK to apply for the credit.
Quote:
Originally posted by reshab
Thanks Pramod ji
I did follow the links you provided and claiming caregiver tax credit. I just wanted to confirm that they will not ask any slip for the sources of income.
Since it is her first return and so she will have to send a paper return and cannot use NETFILE. But I am using NETFILE and I hope that CRA will not create any issue as paper return may take time to get there and processed, but I am filing online and I don't know if it will have any impact on the refund I may get as CRA may try to find her return before processing my return. I hope it will be fine.
NOTE: Another thing I wanted to ask if she can claim GST/PST credit. She was landed before 2013 and then went back. When I say yes on tax software it does show some credit she will get. Is it OK to apply for the credit.
You may be able to NETFILE return for your Mom even if you are filing first time, if CRA has her Date of birth records with them. Please see and read thoroughly from this http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nwcmr-eng.html
Also make sure to read and follow from this http://www.cra-arc.gc.ca/E/pub/tg/t4055/t4055-e.html
Take care.
-----------------------------------------------------------------
Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by reshab
Thanks Pramod ji
I did follow the links you provided and claiming caregiver tax credit. I just wanted to confirm that they will not ask any slip for the sources of income.
Since it is her first return and so she will have to send a paper return and cannot use NETFILE. But I am using NETFILE and I hope that CRA will not create any issue as paper return may take time to get there and processed, but I am filing online and I don't know if it will have any impact on the refund I may get as CRA may try to find her return before processing my return. I hope it will be fine.
NOTE: Another thing I wanted to ask if she can claim GST/PST credit. She was landed before 2013 and then went back. When I say yes on tax software it does show some credit she will get. Is it OK to apply for the credit.
You may be able to NETFILE return for your Mom even if you are filing first time, if CRA has her Date of birth records with them. Please see and read thoroughly from this http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nwcmr-eng.html
Also make sure to read and follow from this http://www.cra-arc.gc.ca/E/pub/tg/t4055/t4055-e.html
Take care.
Thanks once again.
I decided to file paper return this time just to be on safe side.
Hello,
Please do not worry about paper filing, it will not cause the CRA to further question or treat your situation any differently. The most apparent outcome of this is that the return will take a little bit longer to get there and process.
Incidentally, if your mother pays any tax on the pension income in India, then she may be able to claim foreign tax credits in Canada.
Madan Chartered Accountant team
www.madanca.com
-----------------------------------------------------------------
Madan Chartered Accountant team
http://www.madanca.com" rel="nofollow">LINK
