Property sale in India and how to bring money to Canada and taxation on it

[neil1981]

I have property in India since 2010 and i want to sell that property and get the money to Canada. What all the procedures i need to follow and what is the taxation i need to take care of both in India and Canada. Since i live in Canada now, do i need to make someone power of attorney for both Sale of the property and transferring of the money in Canada.

 

[torontosm]

I have property in India since 2010 and i want to sell that property and get the money to Canada. What all the procedures i need to follow and what is the taxation i need to take care of both in India and Canada. Since i live in Canada now, do i need to make someone power of attorney for both Sale of the property and transferring of the money in Canada.

Did you declare the property on your Canadian tax returns?

 

[steaky]

You live in Canada, but you can make visit to India to take care of this.

 

[alok4best]

I have property in India since 2010 and i want to sell that property and get the money to Canada. What all the procedures i need to follow and what is the taxation i need to take care of both in India and Canada. Since i live in Canada now, do i need to make someone power of attorney for both Sale of the property and transferring of the money in Canada.

You will need to work this with a bank in India. Normally as an NRI, you are allowed to take funds out of India. However, you will have to pay cap gains taxes in India.

 

[MsCyn]

Hi,

I'm married to Canadian citizen, we both currently based in Jakarta. I haven't apply for PR yet, but we're moving back later this year and plan to apply inland.
I have sold my property in Indonesia and would like to bring the money whether by cash or transfer to Canada. I have a joint account with my husband in Canada which I recently open, will I get taxed if I send my property money through Bank Transfer to the joint account? Due to the law in Indonesia, my husband's not allowed to work, so basically he doesn't have an income.

Thanks

 

[steaky]

No, because you and your husband are non residents for Canadian tax purposes.

 

[starfish123]

Hi,

Thank you all in advance.

I have a similar kind of matter that i would like to get some inputs and advises.

I am landed immigrant under FSW and living in Canada as PR from 2014 June on wards. My family, wife and two kids, also came with me.

I was working in India and bought a house there in 2012. All money spent to buy this house was tax paid money and earned while working India and we were living in that house until the time we came to Canada.

Now I am planning to sell this house and bring that money to Canada to pay the mortgage in Canada.
Cost of that house was below C$ 100000 when we became PR and landed in Canada.
I don't think i will get a capital gain from that sales since growth was not there.
Now, when sell this house and if I get only the purchase price (in year 2012) or the cost at the time(in 2014) we became PR and bring that money(ie no capital gain) do I need to pay tax in Canada?
Do I need to disclose the source of that money to any where in Canada?
If I don't sell this house do i need to disclose this any where while filing tax in Canada?

Thanks
starfish.

 

[steaky]

If there is a capital loss, I suggest you declare because it will carry forward to offset any future gains in Canada. Anyways, seek a professional accountant.

 

[Harriss]

Hi,

Thank you all in advance.

I have a similar kind of matter that i would like to get some inputs and advises.

I am landed immigrant under FSW and living in Canada as PR from 2014 June on wards. My family, wife and two kids, also came with me.

I was working in India and bought a house there in 2012. All money spent to buy this house was tax paid money and earned while working India and we were living in that house until the time we came to Canada.

Now I am planning to sell this house and bring that money to Canada to pay the mortgage in Canada.
Cost of that house was below C$ 100000 when we became PR and landed in Canada.
I don't think i will get a capital gain from that sales since growth was not there.
Now, when sell this house and if I get only the purchase price (in year 2012) or the cost at the time(in 2014) we became PR and bring that money(ie no capital gain) do I need to pay tax in Canada?
Do I need to disclose the source of that money to any where in Canada?
If I don't sell this house do i need to disclose this any where while filing tax in Canada?

Thanks
starfish.

Hi Starfish
Did you get the funds from India to Canada. I am in the same situation. please help me what is the process, complications in bringing funds to Canada.

I know we need to pay capital gains tax in India for the sale of House, since i had the house more than 3 years so i need to pay Long term capital gains @20% and the purchaser has to deduct TDS on the total sale amount and remit to Govt.

I think i need to file taxes in India to get the TDS amount deducted. Also if you brought money from India please let us know in what means you got them and at what rate, Which means are convenient to bring funds ?.

Please help us.

 

[Alex54321]

This topic is going on and on here and on other treads, but still some things are not clear to me.

My spouse landed in Ontario on August 18, 2018 and we sold our Condo in MI, USA a bit later, in the same month - August 30, 2018.
I know that my spouse (PR) was the owner of the foreign property during two weeks AFTER landing and the Condo's price was the estimated price on the day of landing. But sale was done just a 2 weeks later and no gain could be made.

So, what do we do as tax filing this year?
Should we ignore reporting this sale at all?

 

[shaikhammar87]

Hi,

I did not find any answer in this post.

Although I did studied the tax laws of both the countries and found this.

For sale of property in India, you would need to pay taxes as applicable (LTCG or STCG)
Once you have paid taxes, you can use your NRO account to bring this amount to Canada.
Only condition is that you need not inform the CRA if the amount is upto CAD 1 million.
Process is as follows:
1) Sell Property in India
2) Pay applicable tax in India
3) Obtain a Form 15CB from your CA in India
4) File a self Declaration Form 15CA
5) Remit the amount to Canada by presenting the Certificate to Bank.


If the amount is greater than CAD 1 million:
1) You would need special permission from RBI in India
2) You need to declare the same to CRA in Canada.

For further details I would suggest you to consult some tax lawyer or consultant in Canada.

 

[RT_Delhi]

This post is very informative. Thanks to everyone who has contributed here. My situation is slightly complicated.

We became permanent residents of Canada in Aug 2019 and are back in India after our soft landing.

My husband has an ancestral property running into several million dollars. He is a joint owner with his two other siblings and his dad. We are residing on the same premises and a part of this estate is also rented and we earn monthly rental income from it. We do not plan to sell this property in the near future but since it is being used for residence ( and once I finally move to Canada, I will store my personal belongings and others will continue to stay here) and rental income, how should we deal with this from the taxation point of view .

I also have two under construction properties in India in my name. For both the properties, possession was promised by the developer in 2013 but hasnt been handed over yet. I am pursuing legal remedies against both the developers. Would these two be counted as property since they are not in my possession and have also not been registered in my name yet. I am not even sure if I will even recover the value I paid for these, if ever I sell these. Against one of the developers, insolvency proceedings are underway. Kindly advise.

 

[steaky]

This post is very informative. Thanks to everyone who has contributed here. My situation is slightly complicated.

We became permanent residents of Canada in Aug 2019 and are back in India after our soft landing.

My husband has an ancestral property running into several million dollars. He is a joint owner with his two other siblings and his dad. We are residing on the same premises and a part of this estate is also rented and we earn monthly rental income from it. We do not plan to sell this property in the near future but since it is being used for residence ( and once I finally move to Canada, I will store my personal belongings and others will continue to stay here) and rental income, how should we deal with this from the taxation point of view .

I also have two under construction properties in India in my name. For both the properties, possession was promised by the developer in 2013 but hasnt been handed over yet. I am pursuing legal remedies against both the developers. Would these two be counted as property since they are not in my possession and have also not been registered in my name yet. I am not even sure if I will even recover the value I paid for these, if ever I sell these. Against one of the developers, insolvency proceedings are underway. Kindly advise.

You need to know how much the properties are worth in Canadian dollars when you became a Canadian tax resident.

 

[RT_Delhi]

You need to know how much the properties are worth in Canadian dollars when you became a Canadian tax resident.

I will be filing taxes in Canada for the first time in Mar 2020. I am trying to do some homework prior to that. Struggle is what will be disclosed as property while filing my taxes.

 

[idhar_chicha]

For sale of property in India, you would need to pay taxes as applicable (LTCG or STCG)
Once you have paid taxes, you can use your NRO account to bring this amount to Canada.
Only condition is that you need not inform the CRA if the amount is upto CAD 1 million.
Process is as follows:
1) Sell Property in India
2) Pay applicable tax in India
3) Obtain a Form 15CB from your CA in India
4) File a self Declaration Form 15CA
5) Remit the amount to Canada by presenting the Certificate to Bank.


If the amount is greater than CAD 1 million:
1) You would need special permission from RBI in India
2) You need to declare the same to CRA in Canada.

• Is this still the process to sell property in India and send the money to Canada?
• Is it preferable to sell before moving to Canada or sell it later at a more convenient time?