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Hi Madan,
My parents want to transfer me some money to my Canadian bank account more than 100KC$ as gift,As per RBI regulation back in india,parents can send overseas 250KUS$ per year for children. I like to know if this can be done as simple as normal overseas bank transfer or should i need to collect/produce any form of documentary evidences from them such as deed in order to show to any authorities in Canada, be it CRA or the bank in which i am holding the account.
Thanks and look forward to hear from you!
Regards
Rama
Hi Rama,
The gift transferred to you by your parents is not taxable to you in Canada. The gift can be sent by a wire transfer from your parents' bank account in India to your bank account in Canada. Your parents should prepare a gift letter stating the amount of the gift, the date of the gift, the names of the givers and the name of the recipient. Keep this letter for your records and only provide to the CRA they request to see it. The gift letter should be notarized by a lawyer or Notary Public in India.