Hi. I have a question regarding the income tax filing. Here is my scenario.
I am an Indian citizen and a Canadian PR holder who have bank accounts in India which gives interest on my savings account and also I have invested in some of the stocks in Indian stock market in which I receive some money as dividends. The global income (Indian bank interests, dividends, etc.) should be declared in Canada while filing my income tax and I need to pay necessary tax as per the Canadian income tax brackets.
However, the interest and dividends that I receive in India deducts 30% tax at source as per the Indian income tax regulations. I can file the Indian income tax and get the refund of the Indian interest, Indian dividends, etc. if they are within the Indian income tax slab, else I have to pay the necessary income tax and claim the remaining TDS amount or I may not claim.
For ex:
If the income in India is more that Rs. 500000, then I need to pay income tax as follows
Rs 250000 to Rs 500000 - 5%
Over Rs 500000 to Rs 1000000 - 20%
More than Rs 1000000 - 30%
The question is I do not know if I am eligible for the refund until I file my Indian income tax. The financial year for India is from April to March and I have to wait until March or even more to be sure if I have to pay income tax in India.
On the other hand, I have to file Canadian income tax by April 15.
The question is in this case can I get tax credit for the TDS (Tax deducted at source) in India while filing Canadian income tax? Or is there any advice on filing income tax in this case?
Appreciate your help. Thank you
I am an Indian citizen and a Canadian PR holder who have bank accounts in India which gives interest on my savings account and also I have invested in some of the stocks in Indian stock market in which I receive some money as dividends. The global income (Indian bank interests, dividends, etc.) should be declared in Canada while filing my income tax and I need to pay necessary tax as per the Canadian income tax brackets.
However, the interest and dividends that I receive in India deducts 30% tax at source as per the Indian income tax regulations. I can file the Indian income tax and get the refund of the Indian interest, Indian dividends, etc. if they are within the Indian income tax slab, else I have to pay the necessary income tax and claim the remaining TDS amount or I may not claim.
For ex:
If the income in India is more that Rs. 500000, then I need to pay income tax as follows
Rs 250000 to Rs 500000 - 5%
Over Rs 500000 to Rs 1000000 - 20%
More than Rs 1000000 - 30%
The question is I do not know if I am eligible for the refund until I file my Indian income tax. The financial year for India is from April to March and I have to wait until March or even more to be sure if I have to pay income tax in India.
On the other hand, I have to file Canadian income tax by April 15.
The question is in this case can I get tax credit for the TDS (Tax deducted at source) in India while filing Canadian income tax? Or is there any advice on filing income tax in this case?
Appreciate your help. Thank you