šŸ‡®šŸ‡³NRI Guide

NRI from Canada\nIndia Investment Guide

RRSP, TFSA, T1135 reporting, and cross-border tax ā€” everything Canadian NRIs need for Indian investments.

Indian NRIs in CA
1.8M+
T1135 Threshold
$100K CAD
India MFs Allowed
Yes (most AMCs)
DTAA Status
Active

šŸ‡ØšŸ‡¦Canadian NRIs ā€” Tax & Investment Overview

India-Canada DTAA: Comprehensive tax treaty covering income, capital gains, and dividends. Key provisions: ā€¢ Salary: Taxed only in Canada (country of employment) ā€¢ Indian rental income: Taxed in India, then claim Foreign Tax Credit on Canadian T1 return ā€¢ Capital gains on Indian shares: India has primary taxing rights; Canada credits Indian tax paid ā€¢ NRE interest: Tax-free in India, but taxable in Canada as worldwide income CRA compliance: ā€¢ Form T1135 (Foreign Income Verification): Report Indian assets if total cost >$100,000 CAD ā€¢ Form T1141/T1142: Report distributions/transfers from non-resident trusts ā€¢ Report all Indian income on T1 return ā€” interest, dividends, rental, capital gains

šŸ’°RRSP, TFSA & Indian Investments

Your Canadian retirement accounts stay in Canada: ā€¢ RRSP: Continue tax-deferred growth. If you move back to India, withdrawals are taxable in Canada (25% withholding for NRs) with DTAA relief in India ā€¢ TFSA: Canada considers TFSA tax-free, but if you cease Canadian residency, you cannot contribute. If you return to India, India may tax TFSA income (it doesn't recognize TFSA's tax-free status) ā€¢ RESP: Continues but check implications if beneficiary studies in India You CANNOT transfer RRSP/TFSA to PPF, NPS, or any Indian scheme directly.

šŸ“ŠInvesting in India from Canada

Mutual Funds: Most Indian AMCs accept Canadian NRIs (unlike US NRIs who face FATCA restrictions). Invest through NRE account for repatriability. Stocks: Open a PIS account for trading on NSE/BSE. Many NRI-friendly brokers offer online access. Property: No RBI approval needed for residential/commercial property. Payment through NRE/NRO account. Capital gains tax applies on sale. Key advantage over US NRIs: No PFIC complications ā€” Indian mutual funds are straightforward from a Canadian tax perspective. Report on T1135 if applicable.

šŸ”„CAD-INR Transfers & Repatriation

Moving money between Canada and India: ā€¢ CAD ā†’ INR (to India): Use NRE account for foreign income. Services like Wise, Remitly, or bank wire for best rates ā€¢ INR ā†’ CAD (from India): NRE ā€” unlimited repatriation. NRO ā€” up to $1M/year with Form 15CA/15CB ā€¢ Forex rates: Compare bank rates vs services like Wise ā€” banks typically charge 2-3% spread ā€¢ Large transfers: For property purchases or significant investments, negotiate rates with your bank

šŸ“±Why Canadian NRIs Use Richify

Richify operates in both Canada and India ā€” making it ideal for cross-border finance: ā€¢ Track Canadian assets (RRSP, TFSA, portfolios) alongside Indian assets (MFs, PPF, NPS, property) ā€¢ Canada tools: TFSA Tracker, RRSP planning, opportunity cost calculator ā€¢ India tools: SIP to 1 Crore, NPS vs PPF vs ELSS, FIRE Calculator India ā€¢ Ask Felix about T1135 requirements, DTAA provisions, and investment allocation ā€¢ Privacy-first: no bank linking required in either country

ā“ Frequently Asked Questions

Do I need to report Indian investments to the CRA?ā–¼
Yes ā€” if your total cost of foreign property (including Indian bank accounts, MFs, stocks, property) exceeds $100,000 CAD at any point during the year, you must file Form T1135 with the CRA. All Indian income must be reported on your T1 return regardless of T1135 threshold.
Can Canadian NRIs invest in Indian mutual funds?ā–¼
Yes ā€” unlike US NRIs, Canadian NRIs face few restrictions. Most Indian AMCs accept investments from Canadian NRIs. No PFIC complications. Invest through NRE account for repatriability. Report holdings on T1135 if above the threshold.
What happens to my RRSP if I return to India?ā–¼
Your RRSP remains in Canada and continues to grow tax-deferred. If you become a non-resident of Canada, you can still hold your RRSP but cannot contribute. Withdrawals face 25% Canadian withholding tax (reducible under DTAA). Plan withdrawals carefully to optimize tax across both countries.

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ā“ Frequently Asked Questions

Do I need to report Indian investments to the CRA?

Yes ā€” if your total cost of foreign property (including Indian bank accounts, MFs, stocks, property) exceeds $100,000 CAD at any point during the year, you must file Form T1135 with the CRA. All Indian income must be reported on your T1 return regardless of T1135 threshold.

Can Canadian NRIs invest in Indian mutual funds?

Yes ā€” unlike US NRIs, Canadian NRIs face few restrictions. Most Indian AMCs accept investments from Canadian NRIs. No PFIC complications. Invest through NRE account for repatriability. Report holdings on T1135 if above the threshold.

What happens to my RRSP if I return to India?

Your RRSP remains in Canada and continues to grow tax-deferred. If you become a non-resident of Canada, you can still hold your RRSP but cannot contribute. Withdrawals face 25% Canadian withholding tax (reducible under DTAA). Plan withdrawals carefully to optimize tax across both countries.