I live in Canada and I'm a permanent resident. If I send money to my parents in India, can I claim any kind of tax benefit on that e.g. under the caregiver tax?

I know if I bring them here and they are dependent on me, then the government gives me a tax credit.

  • 1
    It doesn't sound like the caregiver tax credit would apply, since it's "available to individuals who provide in-home support for a relative who is a dependent, is over 18 and resides with the supporting relative in his/her residence at some time in the year" and the individual must be a resident of Canada. – John Bensin Aug 19 '13 at 17:40
  • Obviously, I know very little about Canadian tax law, but this also seems like a policy that would be open to quite a bit of fraud, if it existed. – John Bensin Aug 19 '13 at 17:51

No, you can not claim any sort of tax benefit. The main problem is that your parent is not living with you, though even if they were, they would also have to be dependent on you. I cannot find a good definition of 'dependant', but from what I can find, they must have only a trivial amount of income and must rely on you for at least 50% of their living expenses.

Useful links include:

  • Eligible Dependant, which lists a number of tax credits which may be available for someone living with you. I can find no tax credits which would apply here.
  • CRA's guidelines for infirm dependants, with a helpful questionnaire to determine if you can claim up to $6402 for infirm dependants (which you cannot)

Note that your parent may (but probably won't) be required to pay taxes on the money you submit to them. I have no experience whatsoever with Indian tax law, just pointing this out as a possibility.

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