According to the Canadian International Development Platform, India was among the largest recipients of remittance outflows from Canada in 2018, with figures pushing $3 billion. A large part of it can be attributed to the immigration dynamics between the two countries. Canada currently has over 1.3 million people of Indian origin, according to the 2021 census, with 319,130 international students pursuing higher studies in the country.
Sending remittances from Canada to India involves using various methods, each with advantages, disadvantages, and associated costs. Here are some standard methods for sending money from Canada to India:
Bank Wire Transfer:
Online Money Transfer Services:
Cheques and Demand Drafts:
Remitbee offers competitive exchange rates and low transaction fees, making them an ideal fit for sending remittances to India. The service aims to deliver funds promptly, with a focus on transparency of fees and exchange rates involved.
Users can initiate money transfers through the Remitbee website or mobile app.
The complete fee structure is as follows:
Before choosing a method, it's crucial to consider factors such as transfer fees, exchange rates, speed of transfer, and convenience for both the sender and the recipient, in addition to staying informed about any regulatory requirements and tax implications.
In Canada, sending money to another country does not usually trigger tax liabilities. However, if the funds sent generate income, such as interest or capital gains, that income may need to be reported on the sender's Canadian income tax return.
The two countries also share a Double Tax Avoidance Agreement that prevents individuals residing in the other country from being taxed doubly.
However, it is a different story when sending money from India to Canada. As of October 1st, 2023, remittance outflows from India that are not educational or medical expenses will incur a 5% to 20% tax if the amount exceeds INR 700,000 annually.
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