Tax procedure for investments abroad for NEW PR

[thenumbiceman]

Hi,

I am an Indian citizen, moving to Canada soon on PR. Trying to figure out the taxation policy for investments made / interest earned in India. Process to declare and pay tax for it in Canada. Since India and Canada have dual taxation policy, can I just pay tax in one country or pay in both and reclaim refund.

Please let me know.

Thanks,
Ice

 

[paras1991]

Usually, taxpayers claim a foreign tax credit on their Canadian tax returns... Keep in mind, not always you will be able to claim the whole foreign tax paid on your Canadian tax return..There is a limitation...

as a Canadian tax resident , you are taxed on your worldwide income.

 

[torontosm]

Hi,

I am an Indian citizen, moving to Canada soon on PR. Trying to figure out the taxation policy for investments made / interest earned in India. Process to declare and pay tax for it in Canada. Since India and Canada have dual taxation policy, can I just pay tax in one country or pay in both and reclaim refund.

Please let me know.

Thanks,
Ice

You will pay tax in India first, and then claim that in your Canadian tax return. Depending on the treaty and your tax rate, you may have to pay additional tax in Canada on the same income.