In brief
Canadian tax residence follows residential ties and relevant treaty rules; PR status and an Indian NRI account label do not decide it.
Start with Canada Revenue Agency: Leaving Canada (emigrants) (opens in a new tab)
Keep citizenship, tax residence and FEMA residence separate
These labels answer different questions. Your nationality or OCI card does not alone determine the year’s Indian tax treatment. Establish the relevant year, travel history, income sources and exceptions.
Your next steps
0 of 5 steps complete · Next: Determine your resident period
Determine your resident period
Next stepCRA examines severance of residential ties when emigrating. Record homes, spouse/dependants and the establishment of residence abroad; ask for an individual residence review where ties continue.
Include Indian income independently of asset reporting
Canadian residents generally report worldwide income. Review Indian interest, rent, pensions, investment disposals and business receipts; foreign tax credits have conditions and limits, rather than a guaranteed full offset.
Test the separate T1135 requirement
Specified foreign property with total cost above CAD100,000 at any time in the year can require T1135. Income remains reportable below that threshold. Review personal-use property and registered-plan exclusions, and the first Canadian-resident-year exception. Non-residents do not file T1135 merely because they earn Canadian employment income.
Review unrealised gains before emigrating
Certain assets are deemed sold and reacquired at fair market value when leaving Canada. Asset exceptions and property-list forms need a separate review; this is not a tax on every account balance. Obtain cost and departure valuations before they become difficult to reconstruct.
Build a reconciled evidence file
Practical preparation: match Indian annual interest and rent to Canadian-dollar records, distinguish ownership from signatory access, and reconcile foreign withholding certificates with returns. Ask whether trusts, corporations or estates create additional reporting beyond T1135.
Suggested preparation sequence. Your authority may require a different order. Progress stays on this device.
Canada & India guidance · All countries
Evidence for these steps
Checked 20 October 2026. Links support the statements within their scope; preparation lists are editorial suggestions. Access limitations are disclosed below.
- Determine your resident period: Canada Revenue Agency — Leaving Canada (emigrants)
- Include Indian income independently of asset reporting: Canada Revenue Agency — Foreign tax credit folio
- Test the separate T1135 requirement: Canada Revenue Agency — Questions and answers about Form T1135
- Review unrealised gains before emigrating: Canada Revenue Agency — Leaving Canada (emigrants)
- Build a reconciled evidence file: NRIdisha preparation suggestion; confirm your own requirements.
What to have ready
0 of 4 preparedKeep documents in your own secure records. Tick what you have; nothing is uploaded.
Model the decision with your own figures
Prepare the dates, currencies, costs and amounts you know. Keep tax eligibility, provider access and uncertain assumptions on your adviser’s question list. The calculators show those assumptions explicitly.
For a return to India, add education, parents’ support, healthcare, partner income and locked funds to the household timeline. Bring supporting-tool figures into it only after reviewing timing, currency and overlap.
Questions to take to an adviser
- Am I resident under domestic rules or treaty rules?
- Which holdings are specified foreign property and which exclusions apply?
- Which departure disposals and forms apply to my actual assets?
Who can help
A qualified Canada adviser and an Indian cross-border tax or citizenship specialist, as appropriate. The responsible authority decides applications.
Check an adviser before paying or signingSources & review limits
Published by NRIdisha. Prepared with AI assistance. No individual author or qualified professional reviewer is credited for this guide.
Official sources support the statements they address. They do not certify this guide or your eligibility. Open the source and check current amendments before acting.
Income Tax Department (opens in a new tab) · Reserve Bank of India (opens in a new tab) · National Portal of India (opens in a new tab)
Residential ties, departure return, deemed disposals and payer notifications.
Worldwide income and conditional foreign tax credit.
Cost-based aggregate reporting threshold, income reporting, exclusions and first-year exception.
Keep this page’s title, the exact statement and the official source. Email them to support@nridisha.com. Do not include personal documents.