We have NRE and NRO accounts in India.
For the first time we will be filing Income Tax return in India.
Income being the 1)Interest earned on the amount in NRO account and rental income into NRO account.
Do we also have to show Interest earned in the NRE account? (non-taxable income) in the I-T returns ?
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Many
Thank you Futureguy,
Rental income in India is 3 lakhs/p.a.
We file Income-tax returns in Canada. Yes, they deduct 30% on all interest income in NRO a/c
If we file I-T returns then all Income needs to be shown; that is what we were thinking?
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Many
That is why we always say, "Go and see an Accountant". Yes we do have DTAA. (But the Indian Tax Accountants might not have a clue about the Canadian Taxes and the deductions permitted in our tax system. So, it is nice to come to CD and post to us your queries here and we will see if we can solve them first.
We have a large Personal Deduction of say $11,000. and if you are a Senior, then a few additional bucks to go with with it. See the 2015 Tax Forms and Guides to get an idea. If your income is under the limits, then we do not pay any taxes. So, do not hesitate to DECLARE the income from Rental Property in a Overseas Location. Be truthful and stay on top. You were thinking right and you are a good man MacGee.
Also file your Tax Return in India also and claim your Interest deductions back.
Hope this helps.
FH.
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Quote:
Originally posted by Many
Thank you Futureguy,
Rental income in India is 3 lakhs/p.a.
We file Income-tax returns in Canada. Yes, they deduct 30% on all interest income in NRO a/c
If we file I-T returns then all Income needs to be shown; that is what we were thinking?
Thank you FH for your helpful suggestions
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Many
Futureguy, you nicely explained about NRE/NRO and rental income - thanks.
But not reporting foreign property on Canadian IT is little tricky.
If we ever thought of selling and bringing part of that money to Canada, there would be questions!
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Many
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