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Dec 26, 2020 5:53 pm
In India, I will have a 20 percent capital gains tax on a home in India. Just wondering how much the foreign tax credit will be here in Canada.
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Dec 31, 2020 2:24 pm
The foreign tax credit will be the lesser of (a) the taxes paid in India on the capital gain and (b) the taxes payable in Canada on the capital gain. The highest capital gains tax rate in Canada is 27% (approximately), so you should receive a foreign tax credit of 20%, leaving a balance owing of 7% to the CRA.