Key takeaways
- NRO to Canada: up to USD 1 million a year after Indian tax, with Forms 145 and 146.
- No Canadian tax on gifts or inheritances; T1135 above CAD 100,000 of foreign property.
- NRE interest and Indian rent are taxable in Canada.
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India to Canada: what can go, and how
| Money in India | Can it go abroad? | Limit and paperwork |
|---|---|---|
| NRE or FCNR deposit | Yes, freely | No limit. No Indian tax on NRE interest |
| NRO balance: rent, dividends, pension, savings from before you left | Yes, after Indian tax | Up to USD 1 million per financial year, with Form 145 and usually a CA certificate in Form 146 |
| Sale of a flat or land | Yes, after TDS and tax | Within the USD 1 million. Proceeds of up to two homes bought with foreign money or NRE funds can go back up to the amount you paid. A lower TDS certificate (Form 128) stops excess TDS |
| Inheritance from parents | Yes | Within the USD 1 million, with the will or succession papers. India has no inheritance tax |
| Gift from your parents in India | Yes, they send it under LRS | Up to USD 250,000 per parent per year. TCS of 20% above ₹10 lakh, which they can adjust against their tax |
Canada to India: where to send it
| Send it to | Best for | Indian tax |
|---|---|---|
| NRE account | Savings you may want to take back later | Interest tax-free in India (but taxable where you live) |
| NRO account | Paying Indian bills, EMIs, joint use with Indian income | Interest taxable in India, TDS deducted |
| Your parents’ account | Supporting family | Gifts to relatives are not taxed in India |
| Property, mutual funds, shares | Investing in India through NRE or NRO | Gains taxed in India; NRIs cannot buy farm land |
What Canada taxes and reports
- Gifts and inheritances: Canada has no tax on money you receive as a gift or inheritance from India.
- Form T1135: if the cost of your foreign property (Indian bank deposits, shares, mutual funds, a rented flat) is over CAD 100,000 at any time in the year, you must file it. Your own home in India used personally is excluded.
- Worldwide income: NRE interest, Indian rent and gains on Indian property are taxable in Canada for residents, with foreign tax credit for Indian tax.
- Banks report international transfers of CAD 10,000 or more to FINTRAC. That is routine; just keep the paper trail.
FAST-DS check before 31 December 2026: if you were resident in India in any year while holding a foreign account, shares or RSUs, and they were not in Schedule FA, see FAST-DS for NRIs abroad.
Steps to send money from India
- Pay or settle Indian tax on the money (TDS on rent, interest or property sale).
- Move it to your NRO account if it is not there already.
- Get the CA certificate (Form 146) and file Form 145 online.
- Give your bank the forms, the source documents and its remittance request. It sends the money to your account abroad.
Related: repatriating money from an NRO account, NRE vs NRO vs FCNR, TDS on property sale by NRIs and the free transfer checker.
Sources
- RBI: Master Direction on remittance of assets (USD 1 million limit)
- CRA: Form T1135, Foreign Income Verification Statement
- FINTRAC (Financial Transactions and Reports Analysis Centre of Canada)
Frequently asked questions
Is money from India taxable in Canada?
A gift or inheritance is not taxable in Canada. Income from India, such as NRE interest, rent and capital gains, is taxable for Canadian residents, with credit for Indian tax.
Do I need to file T1135 for Indian accounts?
Yes, if the total cost of your specified foreign property, including Indian deposits and investments, exceeds CAD 100,000 at any time in the year.
How much can I repatriate from India to Canada?
Up to USD 1 million per financial year from NRO balances, property sale proceeds and inheritance, after Indian tax, with Forms 145 and 146.
Is NRE interest taxable in Canada?
Yes, for Canadian residents. It is tax-free only in India.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.