Gift Deed Transfer From Parents Account In India To Canada

Question

3652 viewsOctober 28, 2020Accounting

0

Anonymous Posted October 21, 2020

Hello, my widowed mom lives in Ontario, Canada. She wants to gift money from her savings account in India to her 2 adult children also living in Ontario, Canada. She wants to gift the money while she is alive to children so she feels fulfilled and satisfied as a parent during her old age.

Could the money be Transferred bank to bank to gift the monies to her 2 children. She has already paid the taxes TDS in India on this money.

What do the children need in documentation for this polices here in Canada. Is the gift money be taxable?

Are gift deeds required from India?

1 Answer

score 0 · Answer 1 · 2020-10-28T16:41:26+00:00

Her 2 adult children will not pay Canadian income tax on the cash gifts received. If the cash is kept in an Indian account belonging to the adult children and the amount is more than $100,000 per child, then the children must report this amount to the CRA on form T1135, foreign income verification statement. Any interest earned on and after the date of inheritance is taxable to the children in Canada. Finally, a gift letter should be prepared to document: (a) the name of the giver (b) the name of the recipient, (c) the date of the gift, and (d) the amount of the gift. The letter should be notarized in India and signed by the mother and children.

Gift Deed Transfer From Parents Account In India To Canada

1 Answer

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