# India Tax Desk for NRIs in Canada

> Canadian residents are taxed on worldwide income, so Indian rent, interest and capital gains go on the Canadian T1 return (calendar year, generally due 30 April) with a foreign tax credit for Indian tax. Canadians holding specified foreign property — including Indian bank deposits, shares and rental property — costing more than C$100,000 in total must file Form T1135. In India, NRIs are taxed only on Indian income.

Practice: Country Tax Desks for NRIs — https://www.industax.com/services/country-tax/

New permanent residents often miss T1135 and declare Indian income inconsistently. We prepare Indian returns and summaries in the format Canadian preparers need.

We also handle property sales in India — TDS, lower deduction certificates, capital gains — and repatriation of proceeds.

## Key facts

| Item | Detail |
| --- | --- |
| Canadian tax year | Calendar year; T1 due 30 April |
| Foreign property reporting | T1135 above C$100,000 cost |
| Relief | Foreign tax credit for Indian tax |
| India | NRI taxed on Indian income only |

## Who needs this

- Indian students and PRs in Canada
- Canadian citizens with Indian assets
- NRIs selling Indian property

## What's included

- Indian ITR
- Income summaries for Canada
- Property sale support
- Repatriation

## Documents

- AIS/26AS
- Indian account statements
- Property documents

## Process

1. **Map** — Indian income and assets.
2. **File** — Indian ITR and refunds.
3. **Support** — Canadian credits and T1135 figures.

## FAQs

### Do I report my Indian PPF and FDs in Canada?

Income from them is taxable in Canada for residents, and they count towards the T1135 foreign property threshold.

### Is Indian property sale taxed in Canada too?

Yes, for Canadian residents, with credit for Indian tax paid on the gain.

### What is the penalty for missing T1135?

Canada imposes penalties for late or missing T1135 filings that increase with the delay, so disclosure should be made even when no tax is due.

## Official sources

- Canada Revenue Agency: https://www.canada.ca/en/revenue-agency.html
- Income Tax Department — DTAAs: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/services/country-tax/nri-tax-canada
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.