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Originally posted by Fido

In case your wife is in India for first 3 months send as much money as possible to her during that time... You can get a tax deduction for money sent abroad to sustain your family ..... I experienced this when I landed in 06 and I think the rules must be the same..

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Reiki Grand Master

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Originally posted by sudesingh

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Originally posted by Full House

Any RRSP investment that you make will provide you with a tax rebate and if initiated from the start through the TD1 will not only provide you with savings, it will give a tax rebate also, there by increasing the take home pay. You will observe it will be around 5K/m.

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In order to contribute to RRSP, you need an RRSP limit. To get an RRSP limit you need file taxes. So the op can only contribute to RRSP in year 2. If the op is planning on arriving in December, the earliest he can contribute is in 2016.

The op has also indicated that he wishes to return back in a few years, what happens to the RRSP. Is he going to withdraw that?

For the op's benefit, Registered Retirement Saving Plan (RRSP) is comparable to Provident Fund (PF).

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I was in an Atlantic Province that time and my Accountant had asked me if I d sent any money back home for my family ..Incidentally I had .. He claimed it as family support deduction..

I had forgotten about it till this thread .

Does the following link explain any of this ? Didn't spend time reading ..

http://www.cra-arc.gc.ca/supportpayments/

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Fido.

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Originally posted by sudesingh

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Originally posted by Fido

In case your wife is in India for first 3 months send as much money as possible to her during that time... You can get a tax deduction for money sent abroad to sustain your family ..... I experienced this when I landed in 06 and I think the rules must be the same..

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Wonder how you did it in 2006. Would you be able to provide some details. Never heard of any such deduction.

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Chandresh

Advice is free – lessons I charge for!!

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Originally posted by Full House

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Reduction in tax deductions. : He is on a guaranteed wage. Employer does the deductions and remits it to a plan chosen by the employee. His RRSP Limits become known in 2016 but they are projected and based upon this projection, they make the deductions and contributions to the plan so chosen. These are normal accounting practices. TD1 accommodates such practices. If the tax deducted is less by any chance, then the employee is held accountable and also for its payment to CRA. Thanks for the asking.

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Reiki Grand Master

I DON'T WANT TO HIJACK THIS THREAD.....

HERE IS RRSP 101... Pay yourself first...

Put your finances on autopilot..:

Younger investors who plan to be working for several decades can afford to fill their RRSPs with growth-oriented equities because they can ride out market dips. But even double-digit investment returns won’t do much good if you’re not putting money aside on a regular basis. The same can be said for older investors who have only 10 or 15 years to save for retirement: the amount you put in is far more important than your returns because you have far less compounding time.

In his new book, Stop Over-Thinking Your Money!, MoneySense contributing editor Preet Banerjee explains how many people make the mistake of being so concerned with finding the perfect investments that they ignore the importance of saving. “Put $200 per month into a high-interest savings account that pays a measly 1.5% and you’ll have almost $26,000 after 10 years,” Banerjee says. “Invest only $100 per month and you’ll need an annualized return of almost 14% to get a comparable outcome.”

One of the most effective ways to build up your RRSP is to set up automatic biweekly or monthly contributions based on a percentage of your pay cheque (10% of net pay is a good target). Get that money into the RRSP before you have a chance to spend it and you’ll barely miss it. This strategy of “paying yourself first” not only establishes good savings habits: it also has the major benefit of dollar-cost averaging, says Jason Heath. By making contributions on a regular schedule, you buy more shares when prices are low and fewer when prices are high. “So many people make a big contribution in February before the RRSP deadline,” Heath says. That can put you at risk if markets happen to be peaking at that time: smaller, more frequent contributions smooth out that risk.

Another benefit of contributing throughout the year is the simple satisfaction of watching your money grow more steadily, says Dan Hallett. “People can get more motivated about savings by seeing how all that adds up.”

By the by, you are permitted to save and remit upto a limit of 18% of your income into RRSP. He can over contribute upto a sum of $2,000 Max. He can also swing that 2000 with an amendment for the next year also.
On a salary of $80,000.00 he can contribute a sum of $14,400 for that year into his RRSP. (If he does not exceed 16,400, then, he is in a safe zone)

My regards.

FH.

Good info.
Now let us go to helping Sasi in his relocation to Canada.
Sasi:
If you are saving money by bringing your wife alone, just do it.
2 weeks of company sponsered accomodation is given. You will be adjusting to your work and so you may not be fully equiped to deal with the job search. This is what I recommend :

1. Service apartment rooms - Basically like hotel. Full internet connection and local call. You may be able to stay and heat up items (not do full cooking). Sheridan residences Brampton (google). Rent $ 400- $ 1100 per month. TV will be there. Mail box will be there.

2. One bedroom apartments - Without credit history you may not be able to get good ones. May be subletting can be done. This is like your 1 BHK apartment (of India) with heating. Rent $ 800-$ 900. Hydro extra. You will have to get everything yourself by paying like tv, internet, phone etc..

3. One bedroom condo- Same as 2 except that rent may be $ 1100-$ 1400. Advantage is that you will have gym, recreation room, swimming pool etc.

4. Room with desi - A desi (Indian) may rent a room in his 3 bed apartment for you. You will use many of his services like TV, Phone, internet etc... You will have your own toilet. You will cook at the desi's kitchen when he is not there. Rent $ 400 - $ 600 a month.

5. Basement - Most houses in Canada will have basements. So get a one bed basement. Sun light you may never see inside the house or there might be a small window near the ceiling. You can share many of the utilities like Internet, Cable TV. Rent $ 700-$ 900

Choose and Choose wisely.

Murali The Krishna

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I am a Gents and not a Ladies.