Do I need to pay tax on the income I earned in India?
I am an Indian Citizen and my first landing as a PR was on Dec 2019 and retuned back to India after a week. I came back to Canada on July 2020 and started my employment in Canada. Till the June 2020 I had employment earning from India.
Canadian residents are taxed on income earned worldwide. In most cases, you must pay taxes in the country where you earned the income.
If you’re a resident, you must declare any income earned outside of Canada on your Canadian tax return
You will be taxed on this income in Canada. However, in case you have paid tax outside of Canada on this income, you can claim the tax as a foreign tax credit. The foreign tax credit is not a refundable credit but will reduce your tax payable in Canada.
In order to report properly your non-Canadian income, be sure to keep records of all your payment documents and copies of your income and tax returns. Our advice is to complete your non-Canadian income tax return before you file in Canada in order to determine the foreign tax credit that you can claim.
