Posted on: 28-11-06 14:47:30
Hello Everyone,
I have a question about money which we can bring into Canada after becoming a PR. I know that if we bring it in personally, the same would be allowed without any taxation for just one time i.e. If someone hand carries the money on their second trip back from India.
I would like to know if anyone has an idea if this amount would be taxable if someone from India (parents) remit this money into my bank account in Canada? Can I claim this amount as tax free saying that this is a part of my second time relocation funds? Is there a higher limit on this amount?
Would be grateful to anyone who could throw some light on this.
Thanks
Mel.
I guess you can carry less than $10000 wihout declaring it.
Getting money from parents . I guess you can treat it as borrowed/loan money and it not your earned money. Your earned money is taxable.
Quote:
Originally posted by Mel06
I have a question about money which we can bring into Canada after becoming a PR.
Can I claim this amount as tax free saying that this is a part of my second time relocation funds? Is there a higher limit on this amount?
Mel.
What is second time relocation???????
Would be grateful to anyone who could throw some light on this.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Thanks Jayaram.
So just to understand better .... if I take this as a loan then it would be taxfree? Any documents required by anyone to prove that? Do I need to show repayments as well after a period of time?
Thanks in advance for your responses.
Chandresh,
by second time relocation I meant that we are allowed to carry cash (more than 10000) without declaring to customs if we are personally travelling. But I am looking for a way out to get this money sent to me from India without actually travelling there. Hope this explains.
Quote:
Originally posted by Mel06
Chandresh,
by second time relocation I meant that we are allowed to carry cash (more than 10000) without declaring to customs if we are personally travelling.
Absolutely wrong! you have to declare to customs if you are carrying more than 10k with you in any form - cash, TCs, bank draft encashable in Canada etc.
Quote:
Originally posted by Mel06
But I am looking for a way out to get this money sent to me from India without actually travelling there. Hope this explains.
ONE
No one stops you from getting any amount of money into Canada through normal banking channels or even through a demand draft in mail. Only thing is it should not be 'for the purpose of laundering', nor something which can arouse suspicion of being laundered money.
TWO
The amount is not taxable in Canada if you can prove (that is, if and only if you are required to prove, which itself might not be necessary) that is is not out of YOUR earnings from any source. In case of first year of resident status, it is very easy because whatever you bring in you can show it as your savings back home in any form (in bank, in property, in shares, or even in form of loans given to your family members which you have now recovered). However, from second year it becomes a bit tricky depending on the amount and whether or not you declared any overseas property (assets) in your ownership on your first tax return.
Simple, right?
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Nice insight Chandresh . Thanks .
Is it recommended to state am inflated amount in assets in India (higher than your current) so as to save any complications in bringing appreciated propoerty and Investments from India , later point in time ?
And have these declarations to be made in the 1st Tax Return filing or can be made later also . This advice would extremely valuable to unaware newcomers.
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Fido.
Thanks Chandresh.
This is my first year here .... so yes can use options mentioned by you!
