Taxes on money gifted to me from India to Canada via Bank?

I am a Canadian Permanent Reside, my parents would like to send me around CAD $ 100,000 as a gift which I will invest in a business. Will I be taxed (gift or inheritance) on the money I will receive by Canada Revenue Agency. The money will be send from my father’s bank account to my bank account. It will be a wire transfer.


2 Replies to “Taxes on money gifted to me from India to Canada via Bank?”

  1. No, you do not have to pay tax on a gift or inheritance. If the money is from you selling property or investments that you own in India, you would need to report a capital gain.

    It is a very good idea to be sure to keep the documents showing the money coming to you, and where it comes from. Should you be audited in the future, you will want to be able to show that the money came from a non-taxable source.

  2. There are no gift or inheritance taxes in Canada. As a result, a cash gift from your parents (whether residents or non-residents of Canada) will not be subject to any tax in Canada when in your hands. if you were gifted property, such as shares in a public company, your cost for tax purposes would be the fair market value at the date that you received the gift.

    You have to be able to prove that the amount you received was a gift from your parents and not income earned from some other source, so it is important to keep a record of the bank wire transfer that clearly shows the source of the funds as being from your parents.

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