Tax on Indian Fixed deposit interest for New immigrant in Canada

[Navearor]

I have Fixed deposit with Indian bank for one year period start on 21st March 2023 to maturity on 21st March 2024.
I will get full year interest upon maturity ie on 21st March 2024.
I will be moving to Canada on 15th Feb 2024.
Do I need to add my whole year interest income in my Canada tax return for 2024 or only part of interest after the date when I move to Canada ie from 15th feb 2024 to 21st March 2024 ?
Thanks.

 

[canuck78]

I have Fixed deposit with Indian bank for one year period start on 21st March 2023 to maturity on 21st March 2024.
I will get full year interest upon maturity ie on 21st March 2024.
I will be moving to Canada on 15th Feb 2024.
Do I need to add my whole year interest income in my Canada tax return for 2024 or only part of interest after the date when I move to Canada ie from 15th feb 2024 to 21st March 2024 ?
Thanks.

You will be taxed on the capital gains when it comes to maturity so they’re isn’y a calculation for how much of the interest rate would have potentially been accumulated by a certain date. That’s not how fixed deposits work. Would suggest looking at tax treaties with India though or hire an accountant who specializes in filing Canadian and Indian taxes especially for your first year in Canada.

 

[armoured]

You will be taxed on the capital gains when it comes to maturity so they’re isn’y a calculation for how much of the interest rate would have potentially been accumulated by a certain date. That’s not how fixed deposits work.

Nonsense - that's exactly how fixed deposits work. If there's a fixed interest rate, the tax should only be paid on interest from the date of landing. It's a pretty simple calculation, just a partial year interest calculation (the basics anyway, specifics can get complicated with currency rates or other complications - this sounds like an easy one).

Even if it was on a capital gains basis (which it's not), it's still the same basic approach: there's a 'deemed' disposal (valuation date) as of the date of landing, and it's the gains after that which are taxable. (That can get a bit more complicated but if it's a deposit or listed fund, it might at least have easily quoted values).

Still would suggest and agree that getting an accountant (or one for each jurisdiction if complicated) but it's absolutely only the gains/earnings from date of landing.

 

[armoured]

Nonsense - that's exactly how fixed deposits work.

For clarity - when I say that's exactly how fixed deposits work, I meant pay tax on the interest income from date of landing as the OP asked, i.e. "only part of interest after the date when I move to Canada [ie from 15th feb 2024 to 21st March 2024]."

This is pretty obvious and clear. Tax filer will have to do the calcs themselves (or hire someone qualified to do it).