NRI in Canada: India money, tax and document checklist
Indians living in Canada must track Canada's worldwide-income tax system and India's NRI day-count test separately. Canadian tax residents declare NRO interest and Indian rental income to CRA. The India-Canada DTAA covers key income types. NRE and NRO accounts must be correctly designated. CAD-INR transfers are cheaper via Wise or Remitly than Canadian banks.
Canada taxes worldwide income — declare India income to CRA
Canadian tax residents must declare all worldwide income including India NRO interest, rental income and capital gains to CRA. The India-Canada DTAA (1996) reduces double taxation. Foreign Account reporting: Canadians with foreign assets above CAD 100,000 must file T1135 (Foreign Income Verification). NRI status in India depends on India day-count test.
Key points
- T1135 for India assets above CAD 100,000 — Canadian residents with specified foreign property (including NRE/NRO accounts) exceeding CAD 100,000 must file Form T1135 with CRA annually.
- India banking — Redesignate Indian accounts on becoming NRI; use NRE for overseas savings and NRO for India-source income.
- CAD to INR — Compare CAD-INR across Wise, Remitly and Canadian banks — bank transfers carry a 2–3% spread vs Wise mid-market rate.
Canadian tax and India income
Canadian tax residents pay Canadian tax on worldwide income. NRO interest, Indian rental income and Indian capital gains must be reported on your Canadian T1 return.
T1135 (Foreign Income Verification Statement): if the total cost of all specified foreign property (NRE/NRO FDs, Indian shares, property, etc.) exceeds CAD 100,000 at any time in the year, file T1135 with your T1 by the filing deadline.
India-Canada DTAA: covers salary, dividends, interest and capital gains. Obtain a Canadian Certificate of Residence from CRA and submit with Form 10F in India to claim DTAA reduced TDS.
Annual checklist
Canadian PR card or visa and passport expiry.
India NRE/NRO account KYC and designation review.
T1135 filing if India assets exceed CAD 100,000.
CAD-INR transfer planning, India ITR deadline (July 31) and Canada T1 deadline (April 30).
Frequently asked questions
Do I need to declare my NRE account to CRA?
Yes. Canadian residents must declare worldwide income and assets. NRE interest is exempt from Indian tax but is income for Canadian tax purposes. The account balance contributes toward the T1135 threshold.
Is there FBAR equivalent for Canada?
Canada's equivalent is Form T1135 (Foreign Income Verification Statement) — required when specified foreign property exceeds CAD 100,000. Penalties for non-filing are significant.
Which rate should an NRI in Canada watch?
For money sent to India, track CAD to INR and compare the total cost — spread plus fees — across Wise, Remitly and Canadian banks.