28 October 2021
Hi Experts, I moved to Canada for job with my family in Oct 2020, after spending 200 days in India. I earned salary in India between April 2020 till Oct 2020. I earned salary in Canada from Oct2020 onwards. Since I stayed in India for more than 183 days (I was in india in all previous 10 years ) I am a Tax Resident in India as well as in Canada (due to residential ties).
1. Am I liable to pay tax on my Canadiam Income as well from Oct2020 to March 2021 ?
2. If yes, while filing Form67 for tax relief as per DTAA to get Foreign tax credit, Can I attach my salary slips (employer provided pay / wage statements) as a proof of nature of income, income paid and tax deducted/withheld? Is payslip considered a valid proof?
3. If not payslips, the what document can be provided. For Oct2020 to Dec2020 I have T4 statements stating total income and tax deducted by employer. However for Jan2021 to March 2021 , (As Canada tax year runs from Jan to Dec, there is no T4 (or any canadian proof document similar to Form16 or 26AS) , can I present a certificate from employer on its letter head mentioning my Tax Number, income paid and taxes deducted during 2021 part.
4. What if there is a Foreign tax refund but only after March 2021? Is that tax refund to be reduced from Foreign tax paid for calculating Foreign Tax credits against income offered for tax in india FY 2020-21? Appreciate your response.
28 October 2021
1. Yes. 2.& 3. Tax paid challan or slip to treasury along with Tax residency certificate needed. 4. Yes, Claim only net amount of tax paid.
29 October 2021
Thanks a lot Sir for your response.
For 2. & 3. Since Tax was deducted by employer itself, I don't have challans or slips to treasury. Canada ITR is to be filed in March 2022, what document can I show in this case for Jan 2021 to March 2021 proof of tax deducted/paid.
30 October 2021
At present you may fill the document detail whatever you have. But in case of query from department, you may be asked for the tax payment challan to treasury, or the copy of tax return.
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