23 May 2026

DTAA India-Canada: Complete Guide for NRIs 2026

India-Canada DTAA: Overview

The Double Taxation Avoidance Agreement between India and Canada was signed in 1996. It covers income from employment, business profits, dividends, interest, royalties, capital gains, and pensions — making it highly relevant for the large Malayali and Indian diaspora in Canada.

Key Benefits for Canada NRIs

  • Canadian salary: Not taxable in India if you qualify as NRI
  • Interest from NRO accounts: TDS capped at 15% under DTAA (vs 30% without)
  • Dividends from Indian companies: TDS capped at 15% under DTAA
  • Rental income from Indian property: Taxable in India; Canadian foreign tax credit available
  • Capital gains on Indian property: Taxable in India; Canada provides foreign tax credit
  • Pension income: Generally taxable only in country of residence

NRI Status for Canada Residents

Canadian residents of Indian origin are NRIs if they spend fewer than 182 days in India in a financial year. The 2020 deemed residency amendment applies if Indian-source income exceeds ₹15 lakhs and India visits are 120+ days. Canada NRIs should track India visits carefully.

How to Claim India-Canada DTAA Relief

  1. Obtain a Certificate of Residency from the Canada Revenue Agency (CRA)
  2. Submit to Indian income payers as TRC along with Form 10F and PAN
  3. File ITR-2 in India claiming DTAA relief under Section 90
  4. Claim foreign tax credit on Canadian T1 return for Indian taxes paid

RRSP, TFSA & Indian Tax Implications

Canada NRIs should note: RRSP and TFSA accounts are not recognised as tax-exempt under the India-Canada DTAA. Income earned within these accounts from Indian investments may still be subject to Indian tax. Consult a cross-border tax advisor for specific guidance.

NRI Home Loans for Canada-Based NRIs

Canada-based NRIs are eligible for NRI home loans in Kerala. CAD income is considered for eligibility. Blueberry FM facilitates NRI home loans up to ₹10 Crores for Canada NRIs purchasing property in Kerala.

NRI Home Loan Kerala | Settle in Kerala from Canada | NRI Tax Planning Kerala