Posted on: 30-06-14 14:46:16
Once you are sure about the property. paying money is a stright process, however reparting money back to canada is cumbersome, though not impossible, remember you have to declare in cad, plus you have to pay tax in India, for now I think you need to hold minimum 3 years the long term cap gain of 20% (subject to gain, in some cases may have to pay in Canada too..)
open NRE AC in bank of your choice not necessairy citi with internet banking facility
then ask for the banking details of the builder,
you can then make an online transfer to the builder
Quote:
Originally posted by Confused_Canadian
Once you are sure about the property. paying money is a stright process, however reparting money back to canada is cumbersome, though not impossible, remember you have to declare in cad, plus you have to pay tax in India, for now I think you need to hold minimum 3 years the long term cap gain of 20% (subject to gain, in some cases may have to pay in Canada too..)
Paying money for any purchases, have to be made in an exact format. It is not that easy when you are dealing with transactions involving Fixed Assets, such as a Home. All of the documents needs to get checked and verified first and has to be made sure that no other individual has title to it. It also gets transferred to you prior to payment for the house.
Moses did part the RED SEA, and you can part your hair, if you are not bald, to the left or to the right, and I suppose, you wanted to say REPATRIATING, but came out that way. that is O.K. You are right when you say that LTCG only takes effect if you hold on to a fixed asset for a minimum of three years. Also the buyer of your property, when you sell, will have to withold a 20% of the sale price and deposit it into the IRS, Indian Revenue Services. You need to get hold of that receipt to claim back the sum as it is free, because you had the possession of the property for three years or longer.
Also, if you paid the taxes in India, for Income Tax purposes, on any transaction, you can claim and get credit for such a payment here in Canada as there is a treaty called the Dual Tax Avoidance Treaty (Agreement). But all of this has to be kept track of in the paper format. So, be sure to obtain receipts for the monies paid. Once you get the monies back, the taxes paid are NIL. So, you will have to show the Capital gains in Canada and pay the taxes required on such gains OR adjust them towards any losses that you incurred here on a similar transaction.
Quote:
Originally posted by Confused_Canadian
open NRE AC in bank of your choice not necessairy citi with internet banking facility
then ask for the banking details of the builder,
you can then make an online transfer to the builder
---
Some of the transactions cannot be done over the net or directly with a builder or a previous owner. It needs to be transacted with the help of a lawyer and the monies that exchange hands takes place simultaneously when the documents are delivered and the property gets transferred. All of these need to get verified, such as spellings in the documents, other items such as names, addresses, thumb impressions, Picture Ids, DD's and sources of the funds or Mortgage documents etc., prior to the delivery of the title to the new owner/s.
All of these formalities get done at a specific time on a specific day and the KEYS to the property change hands at that time.
It is a simple process for those who do this on a daily basis. But for those who purchase once in their life time, it seems tedious and time consuming. All of these things happen every where on a daily basis and there are no short cuts to these things. So, do not create an impression that it is a simple process. In my opinion that becomes a science and some do it very meticulously.
FH.
FH,
To answer any question, you can answer or you can over answer, depends on the person,everything is relative. The opening post is simply asking a question how to pay and you are talking about, thumb impression, picture taking and what not,. Though all it s true, what is asked that you answer first. You are free to answer it your way, but don't try to act smart by cutting anyone.
The bottom line is whatever you do specially in India, nothing can be 100% guranteed, till you get the possession, there is always a risk. Campa cola society is a recent example where in even after 30 years of living they mark it for demolition.
Quote:
Originally posted by Full House
Quote:
Originally posted by Confused_Canadian
Once you are sure about the property. paying money is a stright process, however reparting money back to canada is cumbersome, though not impossible, remember you have to declare in cad, plus you have to pay tax in India, for now I think you need to hold minimum 3 years the long term cap gain of 20% (subject to gain, in some cases may have to pay in Canada too..)
Paying money for any purchases, have to be made in an exact format. It is not that easy when you are dealing with transactions involving Fixed Assets, such as a Home. All of the documents needs to get checked and verified first and has to be made sure that no other individual has title to it. It also gets transferred to you prior to payment for the house.
Moses did part the RED SEA, and you can part your hair, if you are not bald, to the left or to the right, and I suppose, you wanted to say REPATRIATING, but came out that way. that is O.K. You are right when you say that LTCG only takes effect if you hold on to a fixed asset for a minimum of three years. Also the buyer of your property, when you sell, will have to withold a 20% of the sale price and deposit it into the IRS, Indian Revenue Services. You need to get hold of that receipt to claim back the sum as it is free, because you had the possession of the property for three years or longer.
Also, if you paid the taxes in India, for Income Tax purposes, on any transaction, you can claim and get credit for such a payment here in Canada as there is a treaty called the Dual Tax Avoidance Treaty (Agreement). But all of this has to be kept track of in the paper format. So, be sure to obtain receipts for the monies paid. Once you get the monies back, the taxes paid are NIL. So, you will have to show the Capital gains in Canada and pay the taxes required on such gains OR adjust them towards any losses that you incurred here on a similar transaction.
Quote:
Originally posted by Confused_Canadian
open NRE AC in bank of your choice not necessairy citi with internet banking facility
then ask for the banking details of the builder,
you can then make an online transfer to the builder
---
Some of the transactions cannot be done over the net or directly with a builder or a previous owner. It needs to be transacted with the help of a lawyer and the monies that exchange hands takes place simultaneously when the documents are delivered and the property gets transferred. All of these need to get verified, such as spellings in the documents, other items such as names, addresses, thumb impressions, Picture Ids, DD's and sources of the funds or Mortgage documents etc., prior to the delivery of the title to the new owner/s.
All of these formalities get done at a specific time on a specific day and the KEYS to the property change hands at that time.
It is a simple process for those who do this on a daily basis. But for those who purchase once in their life time, it seems tedious and time consuming. All of these things happen every where on a daily basis and there are no short cuts to these things. So, do not create an impression that it is a simple process. In my opinion that becomes a science and some do it very meticulously.
FH.
On 19th of January 2011 the O.P. posted a question asking how to pay a builder. I don't want to get deeper into that. That is an essay for another day. Some one digs up a thread and revives it. You answered to that thread with your response.
I responded to your posting. Not to the O.P. Now am I in deep Sh*T over this? You sure are entitled to your post and your opinion. May be I acted extra smart. And I am sorry if I did that. Next time I will not cut or correct anyone. I will let it ride. I will not flog a dead horse either.
I liked your bottom line.
FH.
xxxx
Quote:
Originally posted by Confused_Canadian
FH,
To answer any question, you can answer or you can over answer, depends on the person,everything is relative. The opening post is simply asking a question how to pay and you are talking about, thumb impression, picture taking and what not,. Though all it s true, what is asked that you answer first. You are free to answer it your way, but don't try to act smart by cutting anyone.
The bottom line is whatever you do specially in India, nothing can be 100% guranteed, till you get the possession, there is always a risk. Campa cola society is a recent example where in even after 30 years of living they mark it for demolition.
Quote:
Originally posted by Full House
Quote:
Originally posted by Confused_Canadian
Once you are sure about the property. paying money is a stright process, however reparting money back to canada is cumbersome, though not impossible, remember you have to declare in cad, plus you have to pay tax in India, for now I think you need to hold minimum 3 years the long term cap gain of 20% (subject to gain, in some cases may have to pay in Canada too..)
Paying money for any purchases, have to be made in an exact format. It is not that easy when you are dealing with transactions involving Fixed Assets, such as a Home. All of the documents needs to get checked and verified first and has to be made sure that no other individual has title to it. It also gets transferred to you prior to payment for the house.
Moses did part the RED SEA, and you can part your hair, if you are not bald, to the left or to the right, and I suppose, you wanted to say REPATRIATING, but came out that way. that is O.K. You are right when you say that LTCG only takes effect if you hold on to a fixed asset for a minimum of three years. Also the buyer of your property, when you sell, will have to withold a 20% of the sale price and deposit it into the IRS, Indian Revenue Services. You need to get hold of that receipt to claim back the sum as it is free, because you had the possession of the property for three years or longer.
Also, if you paid the taxes in India, for Income Tax purposes, on any transaction, you can claim and get credit for such a payment here in Canada as there is a treaty called the Dual Tax Avoidance Treaty (Agreement). But all of this has to be kept track of in the paper format. So, be sure to obtain receipts for the monies paid. Once you get the monies back, the taxes paid are NIL. So, you will have to show the Capital gains in Canada and pay the taxes required on such gains OR adjust them towards any losses that you incurred here on a similar transaction.
Quote:
Originally posted by Confused_Canadian
open NRE AC in bank of your choice not necessairy citi with internet banking facility
then ask for the banking details of the builder,
you can then make an online transfer to the builder
---
Some of the transactions cannot be done over the net or directly with a builder or a previous owner. It needs to be transacted with the help of a lawyer and the monies that exchange hands takes place simultaneously when the documents are delivered and the property gets transferred. All of these need to get verified, such as spellings in the documents, other items such as names, addresses, thumb impressions, Picture Ids, DD's and sources of the funds or Mortgage documents etc., prior to the delivery of the title to the new owner/s.
All of these formalities get done at a specific time on a specific day and the KEYS to the property change hands at that time.
It is a simple process for those who do this on a daily basis. But for those who purchase once in their life time, it seems tedious and time consuming. All of these things happen every where on a daily basis and there are no short cuts to these things. So, do not create an impression that it is a simple process. In my opinion that becomes a science and some do it very meticulously.
FH.
