Filing of Canada Tax Returns for NRIs

If you are an NRI earning income in Canada or maintaining financial connections to India, filing your Canadian income tax return (T1) can be complex. Canada follows a residency-based taxation system, which means your tax obligations depend on where you live, maintain ties, and earn income – not just on your citizenship.

At FinPracto, we bridge the gap between Canadian and Indian tax laws, helping NRIs, globally mobile professionals, international students and investors meet their responsibilities – while ensuring maximum tax efficiency and eliminating the risk of double taxation.

Whether you recently moved to Canada, are working on a visa/PR, planning to relocate out of Canada or have investments both in India and Canada, we provide end-to-end filing and advisory support tailored to your global profile.

 

Who Must File Tax Returns in Canada?

You may be required to file a Canadian tax return if you:

  • Are a Canadian resident or deemed resident for tax purposes
  • Earn Canadian-source income (employment, property, capital gains, business income, etc.)
  • Have foreign assets or income exceeding CRA reporting thresholds
  • Are immigrating to or leaving Canada during the financial year
  • Want to claim a refund, tax credits or benefits applicable to you

Unsure whether you qualify as a resident or non-resident?

Our team helps determine your tax residency status and corresponding filing requirements.

Canadian Tax Deadlines At a Glance

Our team helps determine your tax residency status and corresponding filing requirements.

Filing Type Deadline
Individual Tax Return (T1) April 30 (next year)
Self-Employed or Spouse of Self-Employed June 15
Payment of Taxes Owed April 30
Residency Determination Filing Within 6 months of arrival or departure

Late filing may result in interest, penalties and loss of benefits.

Common Tax Forms for NRIs & Expats

Depending on your tax situation, filings may include:

  • T1 General : Individual income tax return
  • T1135 : Reporting foreign property > CAD $100,000
  • NR4 : Reporting Canadian income paid to non-residents
  • NR73 / NR74 : Determination of residency on entering or leaving Canada
  • T2209 / T2036 : Foreign tax credit calculations
  • Form T1161, T1243, T1244 : Departure / exit taxation reporting

Our team manages all form filings, disclosures and documentation end-to-end.

Foreign Asset & Income Reporting (T1135)

If your foreign property exceeds CAD $100,000 at any time during a year, filing T1135 is mandatory.

  • Real estate in India
  • NRE / NRO / FCNR bank deposits
  • Mutual funds, shares & securities in India
  • Insurance / investment products

Penalties for non-compliance can be significant. FinPracto ensures full and timely asset reporting while safeguarding your confidentiality.

Moving Out of Canada? Assistance With Departure Tax

When you cease Canadian tax residency, a departure tax (deemed capital gains) may apply on worldwide assets. We support:

  • Departure tax calculations
  • Deferral & election submissions
  • Reporting of RRSP, TFSA and other registered plans
  • Residency reassessment assistance

Our cross-border experts help you exit Canada without unexpected tax liabilities.

Avoiding Double Taxation – Canada & India DTAA Support

Under the India–Canada Double Taxation Avoidance Agreement (DTAA), many NRIs can claim:

  • Credit for taxes paid in India
  • Relief on income taxed in both countries
  • Optimised tax positions through proper documentation

We ensure strategic filing of both Canadian & Indian returns, so you don’t pay tax twice on the same income.

⚠️ CRA Non-Compliance Penalties – Why Timely Filing Matters
Non-Compliance Type Possible Penalty
Late filing 5% + 1% per month
T1135 non-reporting Up to $2,500 per year
Incorrect NR4 / T4 reporting Up to $100 per form
Gross negligence penalties Up to $12,000

FinPracto helps you avoid costly penalties and maintain a clean compliance record.

FAQs

Yes. Canada taxes residents on global income, so income earned in India may need to be disclosed. FinPracto helps determine the correct tax reporting and ensures relief under the India–Canada DTAA where applicable.

Most likely yes. If you earned employment income, part-time income, scholarship income, or Canadian-source earnings, you must file a T1 tax return to remain compliant with CRA.

Typically, you will need income slips (T4, T5, NR4), bank/investment statements, tuition slips (T2202), rental statements, foreign income documents, and proof of deductions/credits. FinPracto shares a simple documentation checklist for first-time and returning filers.

Yes. Form T1135 – Foreign Income Verification Statement must be filed if your foreign property crosses the threshold. Penalties apply for non-compliance. Our team handles full foreign property disclosures securely.

If you leave Canada and cease residency, CRA may tax you on the deemed sale of your worldwide assets. FinPracto calculates departure tax, determines exemptions, and assists in deferral elections where eligible.

Yes. Under the India–Canada DTAA, you may be eligible for foreign tax credits and tax relief. We ensure correct documentation so you legally avoid double taxation.

CRA residency rules are based on residential ties, physical presence, and intention to stay. FinPracto performs a residency determination assessment to ensure accurate filing status and prevent CRA disputes.

No. Filing is 100% remote and secure. All documents can be shared digitally, and refunds/returns are processed online from anywhere in the world.

Yes. We handle CRA inquiries, reassessments, audits and penalties, ensuring peace of mind and protection from non-compliance risks.

Simply book a consultation or submit your details through the inquiry form. Our Canada-specialised NRI desk will assign a tax expert, review your profile and begin filing immediately.
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