Quote:
Orginally posted by yellowknife
I had no idea that I could possibly have tax liabilities in Canada from sale of property in India.. I need to investigate this..
thanks
Canada tax rules tax world income - which means that whatever you earn in any part of the world, is also taxable in Canada, irrespective of the fact whether it has been already taxed in the country where the income was earned. However, I understand that there is a double taxation treaty between Canada and India, and under that treaty, a Canadian resident can claim tax relief in his Canadian tax return.
Apart from that, if this property is worth more than CAD 100k and if you have not already declared the fact in your tax returns in Canada, your bringing the funds into Canada will be taxed as income even if you sell it at a loss, since as per tax rules in Canada, a resident is required to report in a separate schedule of his tax returns if his total assets (cash/bankdepposits/shares/inventments/real property etc.) outside of Canada are more than 100k worth.
So do take that into account before you try to get the money into Canada. Even if the property is worth less than 100k C$ but has been earning some income which has not been reported in your Canadian tax returns, you might attract penalties while brining the funds into Canada.
Chandresh
Hi guys,
Thanks a lot for your input. Thanks Chandresh. I am not sure yet if I will bring the funds into Canada. I will certainly consider the tax implications. I will speak to my accountant. What I am more concerned about is the tax liability in India and how to convert the amount into CAD $ etc.
thanks