NRI in Canada: India money, tax and document checklist
NRI Dash Research Team · Last reviewed: 2026-06-28
NRI in Canada refers to an Indian national or person of Indian origin residing in Canada as a tax resident, subject to obligations under both Canadian and Indian tax law. Canada taxes its residents on worldwide income, which includes NRO account interest, rental income from Indian property, and dividends from Indian companies. Under the India-Canada Double Taxation Avoidance Agreement, NRO interest is taxed at a maximum of 15% in India, with Canadian residents claiming the paid Indian tax as a foreign tax credit on Form T2209. NRE account interest, which is tax-free in India, may nonetheless be taxable in Canada and must be reported on the T1 General Return as foreign investment income. Canadian residents must also file Form T1135 if the total cost of foreign assets including Indian bank accounts, real estate, and investments exceeds CAD 100,000. Failure to file T1135 attracts penalties of CAD 25 per day up to a maximum of CAD 2,500 per year.
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.