taxation under dtaa with canada

[satbir singhwahi]

Mr.A purchased mutual fund in fy 2010 to 2021. Then migrated to canada as permanent resident in july 2022. Now in july 2024 sold all mutual fund and paid LTCG in India. Now while filing ITR in Canada for calander year 2024 , whether any relief under DTAA with canada available in canada taxation. Please guide.

[SACHIN GARG]

Article 13 of India Canada DTAA gives power to tax Capital Gain on sale of MF to both countries. So Canada can tax this capital gain as per their domestic law. Please consult someone who practice in Canadian Domestic Tax Laws.

AI Summary

Capital gains taxation: India-Canada treaty permits both jurisdictions to tax mutual fund gains, Canada may apply domestic rules. The India-Canada DTAA's capital gains provision permits both contracting states to tax gains on sale of mutual fund units; therefore Canada may tax the gain under its domestic law despite prior tax paid in India, and the taxpayer should consult a Canadian tax practitioner to determine applicable relief and filing obligations.