Posted on: 03-04-18 01:56:55
Quote:
Originally posted by sumjo
Thanks Everyone!
For money transfer from India to here, I will be using ICICI where I have a NRE/NRO acc.
Now, when the funds ultimately comes in via wire transfer, what all documents am I supposed to furnish to the Canadian bank or the CRA?
I have:
- The Sale Deed
- ICICI bank statement showing the funds being deposited in the NRO acc by DD
- Accounting related documents signed by the CA (work-in-progress)
Anything else that I might need to show to the bank here?
1. Death Certificate
2. The WILL
If you have any of the above.
Its all a formality & technicality. The Canadian bank might or might not ask for the above. They just want to make sure its not some money laundering & drug money that's all. They just want to know if the source of the money is legitimate or not, that's all, no big deal.
Plus as I said their eyes light up, when they see a big amount and they just want to bring you in & try to Up Sell you some of their own stocks, investments, mutual funds etc, so ask them to get lost. Tell them you need the money for a down payment that's all for some house, so they don't pester you.
Any Financial transactions above $ 10,000 ( Usually cash transactions ) they have to report to FINTRAC.
No need to report this money or transaction to CRA or to show it when you file your Canadian tax return with CRA.
But any money you make from this inheritance money after it comes to Canada like stocks, Mutual Funds, Savings account & GIC interest money, you will have to show in later years as Capital gains, Investment income, Interest income etc.
But this first time inheritance money you bring into Canada you don't have to show anything to CRA as there is NO inheritance or gift tax in Canada.
Be careful with ICICI they will easily make 3 % to 4 % on the exchange rate, when you transfer the money over here.
Plus the Canadian bank will charge you some nominal fee like $ 20 CAD for an incoming international wire transfer usually through the SWIFT code, but the Canadian bank won't charge any exchange rate or FOREX fees on it.
Yes, I have both the documents, as mentioned below.
For ICICI, there is nothing much that I can do in terms of the exchange rate....negotiate for a better rate...yes, off course, but still at the end of the day, they WILL make money out of it, whether I like it or not!!
Thanks!
Quote:
Originally posted by MITRON
Quote:
Originally posted by sumjo
Thanks Everyone!
For money transfer from India to here, I will be using ICICI where I have a NRE/NRO acc.
Now, when the funds ultimately comes in via wire transfer, what all documents am I supposed to furnish to the Canadian bank or the CRA?
I have:
- The Sale Deed
- ICICI bank statement showing the funds being deposited in the NRO acc by DD
- Accounting related documents signed by the CA (work-in-progress)
Anything else that I might need to show to the bank here?
1. Death Certificate
2. The WILL
If you have any of the above.
Its all a formality & technicality. The Canadian bank might or might not ask for the above. They just want to make sure its not some money laundering & drug money that's all. They just want to know if the source of the money is legitimate or not, that's all, no big deal.
Plus as I said their eyes light up, when they see a big amount and they just want to bring you in & try to Up Sell you some of their own stocks, investments, mutual funds etc, so ask them to get lost. Tell them you need the money for a down payment that's all for some house, so they don't pester you.
Any Financial transactions above $ 10,000 ( Usually cash transactions ) they have to report to FINTRAC.
No need to report this money or transaction to CRA or to show it when you file your Canadian tax return with CRA.
But any money you make from this inheritance money after it comes to Canada like stocks, Mutual Funds, Savings account & GIC interest money, you will have to show in later years as Capital gains, Investment income, Interest income etc.
But this first time inheritance money you bring into Canada you don't have to show anything to CRA as there is NO inheritance or gift tax in Canada.
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sumjo
Keep the money in India at 8 - 9 % in 10-15 Fixed Deposits.
Then slowly bring the money into Canada one at a time at below $ 10,000.
No questions will be asked. No need to give all the above documents either.
No need to bring it ALL in ONE shot.
The returns sounds good, but in reality tax is deducted at source in the NRO acc (which I think is around 30%). Besides, they are offering only around 7% now-a-days.
Better to bring the money to Canada and then send it back to the NRE acc where there is no TDS from the Indian IT deptt. on the interest that is generated.
However, whether to report that interest income to the CRA or not is something that requires a separate discussion altogether.
What happens if CRA finds out the interest income via information sharing between countries after a few years down the line? Penalty, back tax calculation, file red flagged, etc. maybe??? I don't know!
Thanks
Quote:
Originally posted by MITRON
Keep the money in India at 8 - 9 % in 10-15 Fixed Deposits.
Then slowly bring the money into Canada one at a time at below $ 10,000.
No questions will be asked. No need to give all the above documents either.
No need to bring it ALL in ONE shot.
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sumjo
if you bring the money In and transfer back you will have Exchange losses, not worth it. Regarding CRA coming after you; read Mitron replies between the lines; they will not bother you.
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Many
For people who are planning to sell their property and remit the funds overseas:
Example:
1. You sell the apt for 80 lakhs.
2. The buyer pays you the full amount.
3. You go to your CA for Cap gains tax calculation.
4. CA states that your cap gains is 35 lakhs.
5. Now, either you pay 20% of 35 lakhs as ITax to the Govt. OR buy bonds for the whole 35 lakhs to offset the tax.
6. The balance 45 lakhs is free for repatriation. Can be done after your CA files Forms 15CA & 15CB with the IT deptt. Once done, you need to take the certified copies of the forms to the bank and then they will process the wire transfer. They will also need all the documents related to the sale of the property before they can process.
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sumjo
