Hi:

I am a Canadian Citizen and will be travelling to India shortly. I have some inherited jewellary which i would like to sell and bring the cash back with me to Canada. I know the limit is $10,000 and if over limit i need to declare. I will be declaring the overlimit amount however i need to know what happens after i declare it? Am i fined or have to pay tax on the amount of cash i bring? Does the same apply to Jewellary as well? Say for example if i bring $50,000 back with me, will i be taxed on the overlimit amount?

If anyone has gone thru the same situation pls respond.

Thanks

Quote:

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Originally posted by samna1978

Hi:

I am a Canadian Citizen and will be travelling to India shortly. I have some inherited jewellary which i would like to sell and bring the cash back with me to Canada. I know the limit is $10,000 and if over limit i need to declare. I will be declaring the overlimit amount however i need to know what happens after i declare it? Am i fined or have to pay tax on the amount of cash i bring? Does the same apply to Jewellary as well? Say for example if i bring $50,000 back with me, will i be taxed on the overlimit amount?

If anyone has gone thru the same situation pls respond.

Thanks

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You are a Canadian Citizen. You Live in Canada and also have Bank Accounts etc., It becomes EASY for you to transfer those inherited Dollars (Rupees) and you can TRANSFER ANY AMOUNT you have inherited there in India through the Banking Channels.

When you say inherited, there MUST be a WILL! and that "WILL" will specify your share and the amounts and a copy of that 'will' NOTARIZED and certified by an Accountant or an Auditor and with the proper documentation for the EXPORT of those Dollars etc., out of India, will be needed just for your records here with in Canada, in case the CRA wants to get to know the authenticity of the funds.

Jewelry if you are disposing off the same there in india, please prepare a documentation with PICTURES of the same and the documentation of what it is that you are selling etc., to whom and get all of the funds, (Monies) into a Bank Account through the proper channels and currently they might also need the sales tax collected by you on the sale to be deposited into the Government Coffers and a receipt as proof of the good deed that will be doing to their financial well being, also calls for in that transaction. All of these will need a PAN Card and a Pan Account also. Sales Tax will go the Proper Department and you will be held responsible to do the remittance.

The LIMIT that we always quote is the AMOUNT that we can carry IN PERSON. But through the Banking Channels we can bring in UNLIMITED Funds into Canada, but with proper Documentation, (Only if asked) transferred electronically from abroad. Please bear in mind that any sum over the total of $5,000 Can. will attract attention from the FINTRAC system in place here.

Congratulations to you and the Family upon your Inheritance. If you have any more questions please post them under this.

FH.

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Quote:

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Originally posted by samna1978

Hi:

I am a Canadian Citizen and will be travelling to India shortly. I have some inherited jewellary which i would like to sell and bring the cash back with me to Canada. I know the limit is $10,000 and if over limit i need to declare. I will be declaring the overlimit amount however i need to know what happens after i declare it? Am i fined or have to pay tax on the amount of cash i bring? Does the same apply to Jewellary as well? Say for example if i bring $50,000 back with me, will i be taxed on the overlimit amount?

If anyone has gone thru the same situation pls respond.

Thanks

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Thanks for all the information. My issue is the jewellary is given as a gift to me and no documentation is available. If i am able to sell the jewellary and deposit in my mothers account in India and transfer it to Canada, will the transaction be tracked since it will be more than $10,000 and if so will i need to pay taxes on it after proving that legit transaction as well?

I am thinking of selling part of the jewellary and bring the cash with me along with proof of sale? What is the sales tax thing you are talking about? I have no idea as i have been living here from 20yrs and visit India only for a week or so.

Any INHERITANCE does not attract any taxes. But it is left to you to DOCUMENT the same, as inheritance some how, and then retain a pictorial copy of the same for Tax records, if they ask for it. I am only asking you for its documentation and a Notarized copy to protect your interests as it is bound to come up sooner or later. Once it is GONE, it is out of your possession. It might be too late then. The number of Dollars does not matter.

You should not worry about your transaction getting tracked. You should be prepared if the inquiry calls for it. Which I doubt it very much. Nothing attracts taxes from you on your Inheritance. But just on the 1st of July they brought in the GST into the Indian system. That is why I put in a word of caution there for you to collect the sales tax and remit the same under your PAN Number to the Tax people. They are NOT INCOME TAX people. They are separate and NEW.

If you know an Accountant or an Auditor ask them how to go about it. It is barely a week old by the time you get to know about it. I am also trying to keep on top of all of the developments that are taking place in the Modhi's Government.

Good Luck


FH.

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Quote:

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Originally posted by samna1978


Thanks for all the information. My issue is the jewellary is given as a gift to me and no documentation is available. If i am able to sell the jewellary and deposit in my mothers account in India and transfer it to Canada, will the transaction be tracked since it will be more than $10,000 and if so will i need to pay taxes on it after proving that legit transaction as well?

I am thinking of selling part of the jewellary and bring the cash with me along with proof of sale? What is the sales tax thing you are talking about? I have no idea as i have been living here from 20yrs and visit India only for a week or so.

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Most likely the holdings will be subject to Capital Gains Tax in India. You will need to get a valuation done what the jewellery was worth in April 1, 2001 and capital gains will be calculated based on indexed value of asset and sale consideration amount now. After capital gains are paid in India, you will need to get Form 15CB prepared by a CA in India and present it to the bank in India before funds can be transferred here.

You could be asked about source of funds if depositing the funds in India (either by you or your relative) as well as carrying the amount in person over the limit. By source of funds, they mean entire paperwork.

Funds cannot be transferred out of NRO account to a bank account in Canada with the click of a button. There is a process as described above (show source of funds, pay tax and get 15CB filled by a CA in India).

Refer to links below:
http://www.incometaxindia.gov.in/_layouts/15/dit/mobile/faqs/faq-questions.aspx?key=FAQs+on+Capital+Gains&k=

http://economictimes.indiatimes.com/wealth/tax/budget-2017-shifted-indexation-calculation-base-to-2001-who-gains/articleshow/57034487.cms

http://www.rediff.com/money/report/perfin-pay-tax-if-you-are-selling-inherited-gold/20100210.htm

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Quote:

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Originally posted by samna1978


Thanks for all the information. My issue is the jewellary is given as a gift to me and no documentation is available. If i am able to sell the jewellary and deposit in my mothers account in India and transfer it to Canada, will the transaction be tracked since it will be more than $10,000 and if so will i need to pay taxes on it after proving that legit transaction as well?

I am thinking of selling part of the jewellary and bring the cash with me along with proof of sale? What is the sales tax thing you are talking about? I have no idea as i have been living here from 20yrs and visit India only for a week or so.

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