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New Member
posted Jan 8, 2021 4:39:19 AM

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.

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1 Best answer
Level 4
Mar 19, 2021 4:45:01 PM

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.

1 Replies
Level 4
Mar 19, 2021 4:45:01 PM

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.