Dilemma - Canadian Citizenship | To go for or not

[trk1]

Aren't OCIs and Indian citizens taxed at the same rate?

Yes..but NRIs and Non-resident OCI holders are Tax Deducted at Source at a higher percentage than resident Indians/resident OCIs.., but very promptly the IT returns are processed and if excess returned.

Just like in Canada, Tax residency is based on physical presence in the Financial Year...irrespective OCI or Indian Passport holder.

 

[steaky]

Don’t even think of using Indian passport once you get Canadian passport. As any travel to India using Indian passport post acquisition of Canadian passport will lead of penalty of 350 dollars. Here they may be slow but you will be eventually caught at Indian Immigration anytime in future you travel with Canadian Passport.

Canada cares or not does not matter you should be making sure your comply law of land be it India be it Canada.

I do understand there is some grace period allowed for three months.
But if you plan to stay in India than Canadian passport is a big liability as you pay taxes on those income which are exempt in India.

Incorrect. There are no tax liability for carrying a Canadian Passport while living overseas.

 

[Islander216]

Yes..but NRIs and Non-resident OCI holders are Tax Deducted at Source at a higher percentage than resident Indians/resident OCIs.., but very promptly the IT returns are processed and if excess returned.

Just like in Canada, Tax residency is based on physical presence in the Financial Year...irrespective OCI or Indian Passport holder.

Yeah but then his citizenship is not the issue, it's whether he is a tax resident or not in India.

Even if he is an NRI, he will be taxed more.

In Canada, you are only taxed if you are a tax resident. Once you moves back to India let's say to India, after a certain period he would be a tax non-resident in Canada despite having Canadian citizenship.

 

[Rahul81]

Incorrect. There are no tax liability for carrying a Canadian Passport while living overseas.

Canadians global income is taxable i understand , so are we saying if we stay in India we wont be taxed for income earned in India.

If thats true than it makes sense carrying Canadian Passport but two passports is Big no as one can face severe penalties, India does not allows dual nationality

 

[steaky]

Canadians global income is taxable i understand , so are we saying if we stay in India we wont be taxed for income earned in India.

If thats true than it makes sense carrying Canadian Passport but two passports is Big no as one can face severe penalties, India does not allows dual nationality

That's when you live in Canada, then you are taxed on your worldwide income. China also does not allow dual nationality, but people keep both passport anyways.

 

[Islander216]

Your global income is only taxable as a Canadian citizen when you are a tax resident in Canada.

When you are a tax non-resident then you are only taxed on income in Canada.

 

[trk1]

That's when you live in Canada, then you are taxed on your worldwide income. China also does not allow dual nationality, but people keep both passport anyways.

I know for certain, you have to mandatorily surrender Indian Passport on acquisition of another country citizenship. These days this message is also stamped in the Indian passport when you renew from consulates.

 

[steaky]

I know for certain, you have to mandatorily surrender Indian Passport on acquisition of another country citizenship. These days this message is also stamped in the Indian passport when you renew from consulates.

Yes, but some people don't.

 

[trk1]

Your global income is only taxable as a Canadian citizen when you are a tax resident in Canada.

When you are a tax non-resident then you are only taxed on income in Canada.

We can maybe phrase this as
"Your global income is only taxable when you are a tax resident in Canada.
When you are a tax non-resident then you are only taxed on income in Canada."
Citizenship / PR status doesn't matter I believe.

 

[Islander216]

We can maybe phrase this as
"Your global income is only taxable when you are a tax resident in Canada.
When you are a tax non-resident then you are only taxed on income in Canada."
Citizenship / PR status doesn't matter I believe.

Sure, but then there is no reason not to get Canadian citizenship and then become an OCI in India.

There is no additional benefit of remaining an Indian citizen.

It's far better to be Canadian and OCI than Indian and PR.

As a PR you still would have to fulfill your residency obligations for each renewal as well.

 

[trk1]

Sure, but then there is no reason not to get Canadian citizenship and the be an OCI in India.

You have no additional benefit of remaining an Indian citizen.

Good point..but many elders/retirees do, because that allows them to freely travel to visit their children at the same time enjoy social life in India.

 

[issteven]

I know for certain, you have to mandatorily surrender Indian Passport on acquisition of another country citizenship. These days this message is also stamped in the Indian passport when you renew from consulates.

Who would do that until asked/forced to ?

 

[Islander216]

Well, people who want to respect the rules.

I really don't see why someone would not hand in their Indian passport and just get their OCI.

Makes very little difference.

 

[issteven]

Well, people who want to respect the rules.

I really don't see why someone would not hand in their Indian passport and just get their OCI.

Makes very little difference.

every rule exists because of the consequences/penalties it carries.

if the penalty is very trivial, everyone will take the penalty instead of the rules.

if the penalty is huge (10 year in jail for holding two passports), then problem is solved, there won't be such dilemma.

if you have forces that is stronger than governmental military, then you can rewrite the rules.

the world runs simple as that.

 

[Islander216]

I understand that, but why be on the wrong side of the system when you can be an OCI and enjoy most of the benefits of being a citizen?

I understand what you're saying if you had a country which didn't allow dual citizenship and provided no alternative.

I just don't see why you would take that risk. I wouldn't want to pay a $350 fine for nothing.