If you live in Canada and earn income in India, you may need to file an Indian return as a non-resident, particularly where tax deducted exceeds your liability or you sold property. The India-Canada tax treaty allocates taxing rights and lets you claim credit in Canada for Indian tax. You need a Tax Residency Certificate from the CRA and Form 10F to claim treaty rates in India.
- Document route
- Notary or lawyer, then apostille from Global Affairs Canada or the provincial authority
- Time difference
- IST is 9h30 (Ontario, summer) to 13h30 (British Columbia, winter) ahead
- Law
- Income-tax Act 2025, from 1 April 2026
- Main test
- 182 days in the tax year
NRI Income Tax & DTAA from Canada: how it works
We work out your residential status under Indian law, which turns on days spent in India and, for some citizens with Indian income above a threshold, a lower day count. We then list your Indian income: rent, NRO interest, dividends, capital gains on shares or property. Indian banks and buyers deduct tax at source, often at higher non-resident rates. Filing a return in India lets you claim a refund of excess tax and carry forward losses.
To use the treaty, you request a certificate of residency from the CRA and file Form 10F electronically in India. Some income, such as NRE interest, is exempt in India but taxable in Canada. Capital gains on Indian property are taxed in India and also reported in Canada, where a foreign tax credit applies. We coordinate with your Canadian accountant so both returns tell the same story, and we respond to any Indian tax notice on your behalf.
What clients in Canada should know
- The Income-tax Act 2025 replaced the 1961 Act from 1 April 2026; treaty benefits continue, but form numbers and references have changed, so older guides may be out of date.
- Canada's T1135 asks about specified foreign property; Indian bank accounts and property held for investment are typically included above the cost threshold.
- Indian tax notices are now issued electronically; make sure your registered email on the Indian tax portal is current.
Step by step from Canada
Video consultation
A call at a time that suits Canada, after we have read your documents.
Documents signed in Canada
Notary or lawyer, then apostille from Global Affairs Canada or the provincial authority
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Canada where needed.
The full guide
This page covers what changes when you are in Canada. For the law, the documents and the step-by-step procedure, read our main page on NRI Income Tax & DTAA, or see all services for clients in Canada and the Cross-Border Tax & Money practice area.
Questions from clients in Canada
Do I have to file an Indian return if tax has been deducted?
Not always, but filing is required in several cases and often worthwhile to claim refunds. We check your situation.
Is my NRE interest taxable in Canada?
Yes. It is exempt in India but forms part of your worldwide income for Canadian tax.
How do I get a Canadian residency certificate?
You request it from the CRA. It is then used with Form 10F to claim treaty benefits in India.