Transferring money from Indian Bank to Canadian Bank

[sharat_joshi77]

Hi All,

I want to know if its possible to wire transfer big amount (~ CAD 50K) from Indian bank to Candian bank ? Has anyone done this ? whats the process ?
I sold my house and the money I got from that transaction I need to get in Canada.
Any other feasible ideas ?

Are there any tax implications ?
Please guide...

Regards,
Sharat Joshi

 

[steaky]

I'm not from India, however, I don't see why you cannot wire transfer money from India to Canada especially if there are major banks such as HSBC and Scotia Bank in India:

http://www.scotiabank.com/global/en/0,,6176,00.html

https://www.hsbc.co.in/1/2/homepage#

 

[Bryanna]

Hi Sharat,

First, if you have not sold your property as yet (still negotiating the sale) then it is advisable to immediately contact a competent Chartered Accountant in India.


The Capital Gains tax you will pay in India will depend on various factors:
Did you sell the property within 3 years of buying it (then direct deduction of tax on the incremental gain).... or what is called short-term gains tax will apply.

If you owned the property for >3 years then long-term capital gains tax will apply, which is a flat 20 percent of the capital gain.

Did you sell a property that you inherited or was gifted to you.... then tax is to be paid on the differential of the acquisition cost of the original owner.

If you just want to hold on to the money for sometime then you can invest in the Capital Gains Account Scheme (your bank can help you with this).
and so on....


Any tax reduction is possible only if you reinvest the amount earned from the property sale in purchasing another single unit property (within 2 years of the sale of the current property).... which in your case may not apply as you wish to transfer the money to Canada.


You should also consider RBI restrictions on the amount of money you can transfer abroad in any financial year.

You must deposit the money in an NRO account first.

You will also need a certificate from a Chartered Accountant to transfer these funds abroad.


So, the best advice is to contact a CA before you transfer any funds


Hope this helps

 

[sharat_joshi77]

Thanks all for replies.

@Bryanna, what would happen if i don't pay capital gain tax in India ?
Just wondering as I am in Canada now and don't plan to go back to India.
I don't have any income in India as it is.

Are there any implications...Its out of my curiosity....

 

[Bryanna]

Hi Sharat,

What you are suggesting is illegal and a punishable crime in India.... even if you don't intend to go back in the short term.

You won't be able to transfer the property sale amount through a bank because the certificate from the CA/RBI clearances would apply.

I'm quite confident the bank itself will not accept any of these funds without the necessary clearances as you are an NRI (the bank will ask for proof of your immigration status in Canada at the time of opening the bank account)

If you bring in over CAD 10,000 as cash then you must declare it to CBSA.

You may want to speak with CRA about the tax implications in Canada + the cost basis for calculating the value of the property.... if you bring in money from a property sale without paying taxes in India


My advice is do speak with a qualified Chartered Accountant..... s/he may suggest ways to short-term invest/part invest the amount to reduce taxes..... do pay your taxes (as that works out cheaper than any ensuing penalties + losses due to foreign exchange rates + anxiety you'll have to live with, etc)


Cheers

 

[aashu287]

Hi folks ;

I need urgent help on money we take to canada ....@ time of processing I showed 9 lacs however now I have visa but I have used some money and left with 5 lacs so can I land into canada with 5 lacs or do I have to show the exact amount which I have showed as 9 lacs .....Please advice and thanks in advance

 

[mrbeachman]

Thanks all for replies.

@ Bryanna, what would happen if i don't pay capital gain tax in India ?
Just wondering as I am in Canada now and don't plan to go back to India.
I don't have any income in India as it is.

Are there any implications...Its out of my curiosity....

Another quality immigrant.....