Hi all..I am hoping someone can give me some advice on this. We would like to transfer money from our NRE account in India to Canada, do we have to pay double tax on this here? this was from a sale of property. We have already paid indian taxes on this. The bank manager at TD said that there is no need to pay tax again but we want to be sure. We were thinking of bringing the money in stages and not in lump sum amounts.

I also called CRA and they said it was fine..but then again this is a call centre after all.

Is there a good international tax accountant here on the forums or someone you can recommend I talk to? Please help.

Tax sheltering, indexation and re-investment for selling a FIXED ASSET, there in INDIA.

NON RESIDENT EXTERNAL Account, is generally held in Indian Rupees, after it got converted into INR in exchange for the Foreign Exchange remitted on the day it got converted. (Some Banks may allow you to hold in INR for a short periods, in suspense)

This amount was sent from abroad to India and you will have sufficient proof of such a remittance through your Bank, where you are living. So, the interest this money generates there for you attracts NO TAXES there in India. Please remember that, If your DEPOSIT has generated some interest income, it is also tax free, as this hits the web. SO, you are scott free of any taxes there in India, on the interest portion.

You can surely withdraw the amount from your NRE Account in any way you choose to withdraw, either all of it or in installments.

NOW TO THE NITTY GRITTY.. : (WHAT I AM WRITING HERE MAY BE REDUNDANT) When you sell a FIXED asset there in India, if you have held it for longer than THREE years, then, there is an exemption available to you from Capital Gains. ALSO, having held it for the duration longer than three years, there is an INDEXATION, called Inflation Index that is also made available to you for reducing the amount of the Capital Gains and an accountant would have helped you with this aspect also. If not, it is not too late to avail the same even now.

Also, remember that the buyer has to with hold 20% of the sale proceeds and deposit to the IRS, Indian Revenue Services, as the Capital Gains and provide you with a receipt of the same, which you can reclaim after an accountant provides you with proper procedural documentation to reclaim the same.

Also, you are permitted to re-invest the same there to take advantage of the sheltering feature made available to you. All these are features are well known to the accounting people and you and it will be well worth your time and energy getting to know these features, before posting this to the Canadian desi Website and prior to your repatriation of the NRE account balance.

Hope this helps you. (Immensely)

FH.

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Originally posted by TJohn

Hi all..I am hoping someone can give me some advice on this. We would like to transfer money from our NRE account in India to Canada, do we have to pay double tax on this here? this was from a sale of property. We have already paid indian taxes on this. The bank manager at TD said that there is no need to pay tax again but we want to be sure. We were thinking of bringing the money in stages and not in lump sum amounts.

I also called CRA and they said it was fine..but then again this is a call centre after all.

Is there a good international tax accountant here on the forums or someone you can recommend I talk to? Please help.

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Thanks FH this really helps. Are you an accountant btw?

He is master of all subjects. FH always try to answer any queries raised in this forum. We ( CD's) all love him so much for his knowledge.


God bless you FH.


PS; FH are you in Quora also ?

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Clinton

Just like what the Canadian Government did, they withdrew the pennies from the circulation (That's me) and rounded it to a Nickel. I am also well rounded and I help here with a few good answers to jog every body's memories and update the same as time progresses. I still do the bean counting and do my own Accounting for personal requirements. What I do here is out of love for Humanity and people who drop in with their small problems. Next morning when they wake up, they are gone, just like that.

Thank you guys for the vote of confidence. I will always stand by you.

Take care,

FH.

Thanks FH you really are awesome

btw have any of you dealt with madanca tax accountants in Toronto? we are trying to find a good accountant well versed in tax laws.