Taxation questions for Canadian PR with Indian Income

[AdityaL]

Hello,

I have been a Canadian PR since February 2018. I have income in India from shares, mutual funds and fixed deposits. Last year, I filled my Canadian taxes with a CA but I did not have confidence in how they handled my case. Now I want to do it on my own. I did my own research and have most of my questions answered except a couple.
1. In India, income tax year is from April to March, whereas Canada is January to December. How do I report my Indian income?
For example, this tax year, 2019. I will only have income reported for taxes in India from April 2018 to March 2019. Last year, 2018 the CA just reported the prorated income only from February to March 2018 since the taxes for the rest of the year were not filed yet in India. So in my Canadian tax return this year, should I report the India income from April 2018 to March 2019? And keep doing the same for the rest of time?

2. I also have to file a T1135 this year. My grandfather left me a trust with money payable to me 7 years from now. Do I need to report that in the form?

Your responses will be greatly appreciated. Thank you

 

[steaky]

1) If you know your income by month, then you should have no problem to report whether for your Indian or Canadian income tax.
2) Discuss what type of trust with your CA. If the money is not with you, then you don't need to report that in the form.

 

[canuck78]

Income from India needs to be calculated from January to December which will involve doing some calculations on your part.

 

[Willdo]

I moved to Canada on PR in September 2018 but returned to India in December 2018. I went to Canada again in April 2019 and filed my tax returns for September 2018 to December 2018. I returned to Canada in March 2019 but came back to India in September 2019 before 180 days stay in Canada.

I have shares and mutual funds in Indian companies for more than CAD $100, 000. I also have two houses and my wife has one in her name. She is using her house for business and my one house is occupied by me and the other is vacant.

We intend returning to Canada in April 2020 to settle there. My questions are:

1. Should I have filed form T1135 or any other form for my assets in India for September to December 2018?

2. Since I was not a resident of Canada in 2019 (spent less than 180 days there) do I need to file form T1135 or any other form for 2019 and do I need to show the two house in it or just equity and balance in savings account/FD?

3. Do I need to file my tax returns for 2019 even though I stayed in Canada less than 180 days?

4. Does my wife also have to file T1135 for her house? She has a high salary and also a business.

 

[steaky]

I moved to Canada on PR in September 2018 but returned to India in December 2018. I went to Canada again in April 2019 and filed my tax returns for September 2018 to December 2018. I returned to Canada in March 2019 but came back to India in September 2019 before 180 days stay in Canada.

I have shares and mutual funds in Indian companies for more than CAD $100, 000. I also have two houses and my wife has one in her name. She is using her house for business and my one house is occupied by me and the other is vacant.

We intend returning to Canada in April 2020 to settle there. My questions are:

1. Should I have filed form T1135 or any other form for my assets in India for September to December 2018?

2. Since I was not a resident of Canada in 2019 (spent less than 180 days there) do I need to file form T1135 or any other form for 2019 and do I need to show the two house in it or just equity and balance in savings account/FD?

3. Do I need to file my tax returns for 2019 even though I stayed in Canada less than 180 days?

4. Does my wife also have to file T1135 for her house? She has a high salary and also a business.

In April 2019, you filed tax returns for Sept 2018 to Dec 2018. Did you file a resident or non resident return? Do you owe taxes or maintain significant ties in Canada in 2019?

 

[AdityaL]

1) If you know your income by month, then you should have no problem to report whether for your Indian or Canadian income tax.
2) Discuss what type of trust with your CA. If the money is not with you, then you don't need to report that in the form.

Income from India needs to be calculated from January to December which will involve doing some calculations on your part.

Hi, thank you both for your response. If that is the case, then my foreign income has not been reported from March 2018 to December 2018. I instinctively knew this CA was an idiot! Any advice?

 

[canuck78]

Hi, thank you both for your response. If that is the case, then my foreign income has not been reported from March 2018 to December 2018. I instinctively knew this CA was an idiot! Any advice?

File your taxes when you finally become a tax resident. Not sure what kind of advice you are looking for.

 

[AdityaL]

As mentioned in my first post, I have been a permanent resident and tax resident since February 2018, and filed taxes for 2018. My old CA declared foreign income from February 2018 (since I became a PR) to March 2018 (Tax year in India is from April to March) in my 2018 return. But did not declare from April 2018 to December 2018. Foreign income has not been declared for this period. What do I do about this non declaration is my question. Thanks

 

[canuck78]

As mentioned in my first post, I have been a permanent resident and tax resident since February 2018, and filed taxes for 2018. My old CA declared foreign income from February 2018 (since I became a PR) to March 2018 (Tax year in India is from April to March) in my 2018 return. But did not declare from April 2018 to December 2018. Foreign income has not been declared for this period. What do I do about this non declaration is my question. Thanks

You need to amend your filing.

 

[Deepi333]

In April 2019, you filed tax returns for Sept 2018 to Dec 2018. Did you file a resident or non resident return? Do you owe taxes or maintain significant ties in Canada in 2019?

Thanks very much for your reply and sorry for the late response.
I don't know how I missed your answer. Anyway, can you please let me know if 1. The cost amount of shares of foreign companies and equity mutual funds will be the FMV on my date of landing on PR (05 September 2018) or will the actual cost of shares and mutual funds have to be mentioned on T1135? Can I take either option?

2. If I don't sell any shares/ mutual fund units will this cost amount be added every following year to new shares or units I purchase to show highest cost amount during the year?

 

[canuck_in_uk]

Thanks very much for your reply and sorry for the late response.
I don't know how I missed your answer. Anyway, can you please let me know if 1. The cost amount of shares of foreign companies and equity mutual funds will be the FMV on my date of landing on PR (05 September 2018) or will the actual cost of shares and mutual funds have to be mentioned on T1135? Can I take either option?

2. If I don't sell any shares/ mutual fund units will this cost amount be added every following year to new shares or units I purchase to show highest cost amount during the year?

You really should be seeking the advice of an actual experienced accountant, not people on an immigration forum.

 

[Deepi333]

Thanks for your suggestion. Consulted one last year and another this year. They both differ. Besides, got a lot of information here which I tallied with info given on some Canadian bank websites and found it corroborated...

 

[Deepi333]

As mentioned in my first post, I have been a permanent resident and tax resident since February 2018, and filed taxes for 2018. My old CA declared foreign income from February 2018 (since I became a PR) to March 2018 (Tax year in India is from April to March) in my 2018 return. But did not declare from April 2018 to December 2018. Foreign income has not been declared for this period. What do I do about this non declaration is my question. Thanks

Hi, I think accountants and CPAs also differ in their opinions and even the CRA loses some cases against taxpayers. We just need to try our best to gather whatever information we can, then consult and question the CA/ accountant if in doubt, trying our best to do the right thing especially as the rules for new immigrants, in my opinion, are rather difficult to understand...

 

[canuck78]

No one is spamming just here to help new Canadian expats.

You are advertising your services as an accounting company.

 

[sandybrampton]

Hello experts, I have a question related to Taxation. My mother became Canadian Resident in March 2021 under PGP program. My questions are:
1. Is she supposed to file tax for 2020?
2. She is getting small pension in India so how do we reconcile the income / tax paid since financial year in India is April to March?
3. When I became a PR, I was asked if there are any funds which will follow after my arrival. There were no such queries for my mother. I just want to know where can she declare that she has xx amount which she will bring to Canada after COVID / In a year?
4. Based on her income in India, she qualifies for Ontario senior dental program. Does that put me in conflict with my declaration of supporting her at the time of PGP application?