Indians working in Canada exempted from double taxation
- Dadri: Outrage after mob lynches man for allegedly consuming beef
- At United Nations, Pak PM Sharif plays his old tune on Kashmir
- 2006 Mumbai train blasts: Death sentence for 5 convicts, life for 7
- Modi's foreign visits need to be backed up with action on ground: Rajan
- Diesel rates up by 50 paise from midnight tonight, no change in petrol price
Indian professionals working in Canada will now be exempted from paying social security contribution there if they make such payments in India.
The benefit will be available under the social security pact signed by India and Canada here today to relieve their workers from double taxation.
Under the agreement, workers on short term contracts up to five years will not be required to make any social security contribution in Canada provided they continue to make social security payments in the country of their origin.
The agreement was signed by Overseas Indian Affairs Minister Vayalar Ravi and Canada's Minister of International Trade and Minister of Asia Pacific Gateway Edward Fast.
Officials said according to provision of the pact, professionals will get the benefit of portability of contributions at the time of relocation while totalisation of the periods of contribution would be ensured for determining eligibility to a benefit.
Currently around one million Indians are living in Canada.
According to Indian labour laws, all employees and employers falling under the purview of the Employees Provident Fund Act, 1952, are required to make mandatory contribution towards provident fund. A mandatory contribution fund is known by different names in different countries, such as social security in the US.
Though professionals posted in foreign countries continue to make such payments in India, they are compelled to pay social security tax in the host countries too leading to double contribution.
The social security agreement would help India Inc as they would be able to save on cost for various projects in Canada.