NRE Interest Rate : 9.25%.

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web2000
Member since: May 06

Posts: 849
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Post ID: #PID

Posted on: 19-01-12 11:01:37

Quote:
Originally posted by VJ

Quote:
Originally posted by Nightmare

India has signed tax information exchange treaty with Canada. NRE interest income is taxable in Canada. I hope CDs factor this fact. Further MMS/Sonia might lose election in UP and go for bankrupting India all the way in which case rupee would go down to 60.

The FD interest rates make sense only if the interest is offered in dollar denominated FDs

Yeah,

That's right. Interst earned is TAXED by CRA under "World income".

Another plan can be to reinvest your quarterly earned interest in Private AAA companies' FD (almost up to 12 %). I will post about this after 3 months from now, once I know the LEGAL and COMPLIANT way of doing this.

"NOT TO BRING THIS MONEY BACK" should be a wise move.

Regards,

VJ.

That is true only if you repatriate your money back to Canada.

Fido
Member since: Aug 06

Posts: 5286
Location: Canada
Post ID: #PID

Posted on: 19-01-12 11:47:50

Technically you are supposed to report your world income to the CRA .

Hey the rupee has climbed up since we started this thread .

-----------------------------------------------------------------
Fido.

web2000
Member since: May 06

Posts: 849
Location:
Post ID: #PID

Posted on: 19-01-12 14:10:47

Quote:
Originally posted by Fido

Technically you are supposed to report your world income to the CRA .

Hey the rupee has climbed up since we started this thread .

As long as your funds are sitting in India and you are using the funds there, you don't have to report it. But if you intend to bring your funds to Canada and no tax is paid on those funds then you will have to pay tax in Canada.

john26
Member since: Jan 07

Posts: 167
Location: Calgary
Post ID: #PID

Posted on: 19-01-12 15:21:08

I discussed with this my banker and they advised to talk to CRA which I did. The interest earned on the FD should be reported while filing return/ It does not matter where the funds are or how they are used.

Fido
Member since: Aug 06

Posts: 5286
Location: Canada
Post ID: #PID

Posted on: 19-01-12 16:28:05

Quote:
Originally posted by web2000

Quote:
Originally posted by Fido

Technically you are supposed to report your world income to the CRA .

Hey the rupee has climbed up since we started this thread .

As long as your funds are sitting in India and you are using the funds there, you don't have to report it. But if you intend to bring your funds to Canada and no tax is paid on those funds then you will have to pay tax in Canada.

Ever heard of the term ' World Income ' in Canada's tax liability parlance ?

-----------------------------------------------------------------
Fido.

Fido
Member since: Aug 06

Posts: 5286
Location: Canada
Post ID: #PID

Posted on: 19-01-12 16:29:16

Quote:
Originally posted by john26

I discussed with this my banker and they advised to talk to CRA which I did. The interest earned on the FD should be reported while filing return/ It does not matter where the funds are or how they are used.

This is correct . However if you do not report , its hard for the CRA to find out .

-----------------------------------------------------------------
Fido.

VJ
Member since: Mar 04

Posts: 441
Location: Mississauga-Canada
Post ID: #PID

Posted on: 19-01-12 18:11:59

Hi all,

My understanding is that, I would be declaring my interest income of the period January to december to CRA, simple.

Devide that figure by the respective exhange rate and share that with your accountant. Rest is his baby...

Regards,

VJ

Contributors: Fido(9) VJ(5) mkannuri(3) JRF(2) web2000(2) Nightmare(2) busybe(1) john26(1) infocan(1) tamilkuravan(1) rajcanada(1)

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NRE Interest Rate : 9.25%.

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