Retire in India from Canada: RNOR, CPP pension and return checklist
Indians retiring from Canada to India can claim RNOR status for up to three years, shielding most overseas income from Indian tax. Canadian CPP and OAS pensions are payable in India. RRSP withdrawals are taxable in Canada. CAD savings should be repatriated to NRE before account redesignation.
CPP and OAS pensions are payable to Indian bank accounts
Canadian CPP and OAS pensions can be deposited to an Indian bank account — notify Service Canada of your Indian address and banking details. RNOR status for up to three years exempts most overseas income from Indian tax. RRSP withdrawals before departure may be more tax-efficient than after becoming India-resident.
Key points
- RNOR window — RNOR exempts most foreign income from India tax for 2–3 years after return — plan CAD savings transfers and RRSP drawdown within this window.
- CPP/OAS payable in India — Canadian CPP and OAS pensions are payable internationally including to Indian bank accounts — request transfer at Service Canada before departure.
- CAD to INR — Large CAD-to-INR transfers should be compared across Wise, Remitly and Canadian banks before converting.
RNOR status on return
RNOR applies on return to India if you were NRI in 9 of the last 10 years. During RNOR, Canadian pension income, savings interest and RRSP withdrawals (if received while still non-resident for India purposes) are generally exempt from Indian tax.
After RNOR ends, the India-Canada DTAA governs continued Canadian pension income — the pension article typically gives taxing rights to the country of residence (India).
Canada exit and India re-entry checklist
Notify Service Canada and CRA of your Indian address — arrange CPP/OAS direct deposit to Indian bank or via a Canadian bank with international wire.
File a Canadian departure tax return for the year of emigration — required to report deemed disposition of worldwide assets.
Repatriate CAD savings to NRE before returning to India resident status.
Consider RRSP withdrawal timing — Canadian non-residents pay 25% withholding tax on RRSP withdrawals unless DTAA rate applies (15% under India-Canada treaty for lump sum).
Redesignate NRE/NRO accounts and update all India KYC on return.
Frequently asked questions
Is CPP pension taxable in India after RNOR ends?
Under the India-Canada DTAA, pension income is generally taxable in the country of residence. After becoming India-resident (OR), CPP and OAS may be taxable in India at applicable slab rates — claim a Foreign Tax Credit for any Canadian withholding tax.
What happens to my TFSA when I leave Canada?
A TFSA ceases to be a Canadian TFSA on departure. Withdrawals before or after departure are tax-free in Canada. However, the income may be taxable in India once you become resident.
How do I optimise the RRSP drawdown for India return?
Withdraw strategically while still a Canadian non-resident to take advantage of the reduced DTAA rate. Large lump-sum withdrawals may be more tax-efficient before becoming India-resident. Consult a cross-border tax adviser.