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

[shaikhammar87]

• 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?

1) Yes, this process is still the same.
2) Totally depends on your situation and your choice. There is no fixed rule or difference in either way.

 

[Alex54321]

1) Yes, this process is still the same.
2) Totally depends on your situation and your choice. There is no fixed rule or difference in either way.

Canadian residents must file Form T1135 when the cost amount of their foreign property exceeds $100,000 at any time during the year.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1135.html

 

[idhar_chicha]

Canadian residents must file Form T1135 when the cost amount of their foreign property exceeds $100,000 at any time during the year.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1135.html

Okay thanks...

2) Totally depends on your situation and your choice. There is no fixed rule or difference in either way.

Yup, so needed that confirmation on the tax/CRA perspective.

 

[Parminder Gill]

if I have no NRI account in India and after sale of property which is on my father name can I bring my share to Canada and how ? Please advice.

 

[Viggo]

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.

Hi RT_Delhi,

I'm in a similar position as you were. Together with my parents I own a few properties in India. I moved to Canada earlier this year and will be filing my tax returns soon. Could you share how did you file your return?

I am trying to sell some of these properties and transfer funds to my Canadian account. If you have sold any of your properties or contemplating it, could you advise on the procedure to follow to transfer the sale proceeds to Canada and the associated taxation.

TIA

 

[asheeshc]

Excellent thread and all are going through same situation. Below is my situation.

1) I am on Work Permit and still PR in process.
2) As of now, I cant buy property in all the provices but I can invest in some provinces like Alberta - As I know but you can suggest better.

Below are my questions to save taxes.

a) Can I save taxes by selling property in India and purchasing in Canada ? Or I need to purchase property in india only?
b) Can I save the taxes by investing in bonds?
c) Is there any other way?
d) Please suggest the best available options for Canada so that I can start investing.

 

[prashant1965]

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.

This is very helpful. After paying the capital gains and filing the tax returns in India, I understand that I need to declare the amount in my Canadian tax return BUT, do I have to pay any taxes in Canada? Thanks in advance for your response.