T1135 reporting for Canada NRIs with NRE, NRO and India FD accounts
T1135 (Foreign Income Verification Statement) must be filed with the T1 return if the total foreign cost of all specified foreign property exceeded CAD 100,000 at any point in the calendar year. For Canada NRIs, specified foreign property includes NRE accounts, NRO accounts, India FDs, Indian mutual funds, Indian demat holdings and India real estate held as investment. Penalties for non-filing: CAD 25/day up to CAD 2,500, with further penalties for gross negligence.
T1135 required if total India accounts and investments > CAD 100,000 at any point
File T1135 with your T1 return if NRE + NRO + India FDs + mutual funds + Indian stocks + India investment property had a combined foreign cost exceeding CAD 100,000 at any point during the year. The personal-use family home in India is excluded (if you own it for personal use, not investment). CAD 100,000–250,000 total qualifies for simplified reporting (one line per country). Above CAD 250,000 requires property-by-property detail.
Key points
- Threshold: CAD 100,000 at any point in the year — T1135 is triggered if specified foreign property aggregate foreign cost was above CAD 100,000 on any single day during the calendar year.
- Simplified vs detailed reporting — Under CAD 250,000: simplified form — one line per country with income amounts. Over CAD 250,000: detailed, property-by-property reporting for each account and investment.
- Penalty: CAD 25/day, plus gross negligence penalties — Non-filing penalty: CAD 25 per day up to CAD 2,500. Gross negligence (knowing non-filing): 5% of the highest total foreign cost for the year.
What goes on T1135 for NRIs
NRE savings account: Reportable. Use the Bank of Canada rate to convert the maximum balance during the year to CAD.
NRO savings account: Reportable. Same conversion approach.
NRE and NRO FDs: Reportable. The principal amount (foreign cost) is the amount deposited in CAD equivalent.
Indian mutual funds: Reportable as specified foreign property. Report the original CAD cost — not fair market value for the calculation, but fair market value is reported in additional columns.
Indian shares in demat: Reportable if purchased with foreign funds or accumulated offshore. Report the adjusted cost base in CAD.
India real estate held for investment: Reportable (not personal-use principal residence). Report the cost in CAD.
India real estate personal-use: Generally excluded if used personally as a residence — not investment property.
Filing T1135 on time
T1135 is due on the same date as your T1 return: April 30 (or June 15 if you or your spouse has self-employment income).
File electronically: CRA's NETFILE accepts T1135 submissions. Print and mail is also accepted.
Amending T1135: If you missed prior years, use the Voluntary Disclosures Program (VDP) to file late with penalty relief. CRA VDP is available for T1135 non-filers who come forward before CRA contacts them.
Frequently asked questions
Is an NRE FD at face value or accrued interest included on T1135?
Report the total principal and accrued interest — the gross balance — as the maximum value during the year in CAD. The foreign cost (adjusted cost base) is the principal invested.
If my NRE account went above CAD 100,000 for only one day, must I file?
Yes. The threshold is 'at any point during the year' — even a single day above CAD 100,000 triggers the T1135 obligation.
I have India property worth CAD 500,000 — does T1135 require detailed reporting?
Yes. India investment property above CAD 250,000 triggers detailed property-by-property reporting on T1135. You must list each property separately with address, acquisition cost, fair market value and income earned.