Who this applies to
Anyone who lives in Canada and still has money coming in from India. That could be rent from a flat or interest on an NRO or NRE account. It could be dividends, mutual fund income, a property sale, a pension, or salary from before you moved.
One thing most people do not realize
Interest on an NRE account is usually not taxed in India, and that is exactly why people forget it. It is still income in Canada from the day you became a resident, and it belongs on your Canadian return every year.
The rule in one line
Canada taxes its residents on income from anywhere in the world. Indian income goes on your Canadian return. Tax you already paid in India can often be credited, so you are not taxed twice on the same income. The credit has limits, so we need the proof of what was paid.
What to bring, by type of income
Document organizer
Any Indian income
- Form 26AS or the Annual Information Statement from the Indian income tax portal. It shows income reported against your PAN and tax deducted at source.
- Your Indian return for the same year, if one was filed
- Receipts or challans for any Indian tax you paid yourself
Rent from property in India
- Rent received for the year, by month if you have it
- Expenses paid: society charges, repairs, property tax, agent fees, loan interest
- Whether a tenant deducted tax at source, and the certificate if so (Form 16A)
Bank interest (NRO, NRE, savings, fixed deposits)
- Interest certificates or statements for each account
- Note: NRE interest is usually not taxed in India. It is still income in Canada.
Investments (shares, mutual funds, bonds)
- Dividend and interest statements
- For anything sold: purchase and sale dates and amounts, in rupees
Property sale
- The sale deed and purchase deed, or the dates and amounts
- Any capital gains tax paid in India, with the challan
- Costs of the sale: agent fees, legal fees
Salary or pension
- Form 16 from the employer, or pension statements
- The dates you worked in India during the year
For everyone
- The date you became a resident of Canada, if you moved in the last few years
- The exchange rates are our job. Bring the rupee figures.
Two things people mix up
Reporting income and the foreign property form are separate. Income from India goes on your return no matter what you own. The T1135 form is a list of certain property outside Canada. It is only required when the total cost of that property was more than $100,000 Canadian at some point in the year. A home in India that is mainly for your personal use is generally not counted. An individual does not have to file the form for the year they first became a resident of Canada. We check both every year.
Paying tax in India does not mean no tax in Canada. The foreign tax credit reduces Canadian tax by the Indian tax paid, up to the Canadian tax on that same income. If Indian tax was lower, there may be some Canadian tax to pay. If it was higher, the extra is not refunded here.
What we do with it
We convert the figures and report each type of income in the right place. We claim the credit for Indian tax where the rules allow. We check the T1135 question. We tell you what to keep and what to ask your bank or tenant for next year.
What this guide does not cover
Leaving Canada for good, selling a business in India, or trust and inheritance matters need individual advice. Tell us the situation and we will say whether it fits our service or needs a specialist.
Official sources
- CRA: Questions and answers about Form T1135
- CRA: Federal foreign tax credit (line 40500)
- CRA: Newcomers to Canada, completing your return
This guide is general information, not advice about your situation. It reflects the rules for the 2025 and 2026 tax years. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.