Finance, Forex and Investments

Inheretence Money from The Sale of Family Property?

I am a Canadian Resident. I believe I may be a beneficiary of some funds after the sale of a extended family property in India in the near future. 1. Do I have to pay tax on the money I bring to Canada. 2. The money I will get in India will be in the Local currency. It will be up to me to exchange the money into C$. It may be a challenge to convert the entire amount to Dollar in one go. It may take several months/year. I may have to apply to the Reserve Bank of India for changing the funds to C$. I wish to know when I should let Canadian Authorties know about the money. Should it be when I receive money in local currency or when I transfer the funds to Canada. Also what hapens to the interest gained in local currency. Will it be liable for canadian tax. I may be paying the local Indian Income tax on the interest earned.

Public Comments

1. Sounds like a question for your accountant. I wouldn't rely on answers given here.
2. I cant answer the first part of your question, but I can warn you against using any bank to convert INR to CAD. The rate will be awful - use a specialist currency broker and you'll get rates around 2 to 3% better than the bank. Regards the last part of your question, interest gained while funds are INR will be subject to local tax and you wont be liable for canadian tax. Speak to an independant financial adviser regarding any tax issues you may face when the CAD lands in your account.