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Indian tax and compliance, from the Canada

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A Canadian tax resident is taxed on worldwide income, so Indian rent, Indian interest and Indian capital gains belong on a Canadian return from the first year of residence. Residence in Canada is determined by ties — home, family, bank accounts, licences — rather than by a day count alone, which makes the first year the one that needs care.

Foreign property above a threshold is reported on Form T1135, and the reporting obligation is separate from any tax. Indian real estate, shares and deposits are exactly what it is aimed at.

Leaving again triggers a deemed disposition of most assets at market value on the day of departure — Canada's departure tax. Timing a move back to India without accounting for it can turn a planned relocation into an unplanned tax bill.

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Working out what India still expects from you?

Two fields. We come back with what applies to your residency position and what it costs — and we work Indian hours, so allow for the time difference.

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Before anything else

Who holds which licence

Tax Station — India

Anything under the Income-tax Act, FEMA or the Companies Act. Your Indian return, treaty relief, remittance certificates, and an Indian company if you need one. Our work, our fee, published on each service page.

Anything filed in the Canada

Your Canada return, and anything filed with the authorities there, needs an adviser licensed in the Canada. We do not hold that licence and will not pretend to. What we will do is make sure the Indian position we take fits the one they take, and speak to them directly where the two have to line up.

We say this up front because it decides who is answerable if something goes wrong. One point of contact, two firms, and you should know which is which before you engage either.

Where it goes wrong

What catches people in the Canada

01

Departure tax on the way out

Emigrating from Canada is treated as selling most capital property at fair value that day, and the gain is taxable even though nothing was sold. Indian assets acquired while resident are inside this. It is manageable with notice and expensive without.

02

T1135 reporting on Indian assets

Foreign property over the threshold must be reported annually, and Indian holdings routinely cross it once property is included. The penalty is for not filing, regardless of whether any Canadian tax was due.

03

NRE interest exempt in India, taxable in Canada

The Indian exemption does not travel. With no Indian tax paid there is nothing to credit, so the Canadian charge applies in full to interest most people believe is tax-free.

04

Residency starts with ties, not with days

Keeping a home, a spouse or dependants in Canada can maintain residence even during long absences. People who assume a day count governs get the first and last years wrong in both countries.

05

TFSA and RRSP have no Indian equivalent

Their Canadian tax shelter does not carry into Indian law. Once you are an Indian resident, income inside them may be taxable in India and the balances disclosable in Schedule FA.

06

Selling Indian property from Canada

Section 195 withholding applies in India on the whole consideration, and a lower-deduction certificate has to be obtained before the sale. Applied for afterwards, the cash stays locked until the Indian refund comes through.

Before you act on this

Residency tests, treaty relief and reporting thresholds change on both sides of the border, and the two countries' tax years rarely align. This explains the position in general terms and is not advice on your facts. Check the current rule, or ask us, before you act on it.

Handled by us, in India

The India side

Fees are published on each page. Government charges, where they apply, are shown separately and billed at actuals.

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Priced before we start

Every service on this site carries its fee. You get a written scope and a number before any work begins, and the invoice matches it.

Two people on every filing

Nothing goes to a department on one pair of eyes. A second professional reviews the return before it is submitted.

A person, not a ticket

You get a named associate who knows your file, reachable on WhatsApp, not a queue and a different voice every call.

We watch the calendar

Once you are on our books we track your due dates and reach out before the deadline, not after the late fee.

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