Rental Income in another country

[skyriver]

I have rental income in India, and will be moving to Canada soon. I will meet an accountant or CA when I move to Canada to discuss this, but wanted to know from experience of others here. For those who have already moved or researched about this, can you tell me about the taxation for this income ?

Also what about other off shore incomes like Interest from FDs or mutual funds ?

Thanks

 

[mad_hatter]

I have rental income in India, and will be moving to Canada soon. I will meet an accountant or CA when I move to Canada to discuss this, but wanted to know from experience of others here. For those who have already moved or researched about this, can you tell me about the taxation for this income ?

Also what about other off shore incomes like Interest from FDs or mutual funds ?

Thanks

You pay Canadian tax on worldwide income, including interest income from FDs, mutual funds and real properties. If you pay tax for these incomes in your home country, you can get a foreign tax credit.

 

[skyriver]

Thanks for the reply. Does that mean if I opt to pay tax on these incomes in India itself, then I won't have to pay any taxes in Canada ?
I will be moving to Canada and most likely, won't have an income there for the first 6-7 months, so don't really plan on paying any taxes after the 1st year, since I will be new to taxes there.

 

[mad_hatter]

Thanks for the reply. Does that mean if I opt to pay tax on these incomes in India itself, then I won't have to pay any taxes in Canada ?
I will be moving to Canada and most likely, won't have an income there for the first 6-7 months, so don't really plan on paying any taxes after the 1st year, since I will be new to taxes there.

No, you still have to pay Canadian tax, however, you will be able to reduce the Canadian tax payable if you have to pay tax in your home country.

Canada tax the resident's worldwide income. Therefore, even you don't have Canadian source income for the first few months after you moved to Canada, your income from India during that time is subject to Canadian tax.

 

[skyriver]

No, you still have to pay Canadian tax, however, you will be able to reduce the Canadian tax payable if you have to pay tax in your home country.

Canada tax the resident's worldwide income. Therefore, even you don't have Canadian source income for the first few months after you moved to Canada, your income from India during that time is subject to Canadian tax.

Got it. Thanks. I will look into the treaty between India and Canada about the same to understand the percentage of tax I will be paying in India, and that I have to pay in Canada. Cheers!