File ITR in India from Canada – Complete NRI Tax Guide 2025
Learn how to file ITR in India from Canada. Simple NRI tax filing guide covering DTAA, income rules, refunds & step-by-step process for 2025.
Filing Taxes in India with Foreign Income: A Step-by-Step Guide for Canadian Residents
If you are an Indian living in Canada and earning income both in India and abroad, you may still need to file an Indian Income Tax Return (ITR).
Understanding how to file ITR in India from Canada can be confusing — especially when dealing with foreign income, Indian bank accounts, and tax treaties.
This simple and practical guide answers the most common questions about NRI tax filing from Canada.
Learn how to report Indian income, claim tax credits under the India–Canada Double Taxation Avoidance Agreement (DTAA), and complete your ITR online from anywhere in the world.
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Whether you have rent, mutual funds, or pension income in India, these FAQs will help you file your taxes smoothly, avoid double taxation, and stay compliant with Indian tax laws.
1. Who needs to file an Indian income tax return from Canada?
Short Answer: Any Indian citizen or NRI earning income in India must file an ITR.
Long Answer: Even if you live in Canada, you must file taxes in India if you earn income from rent, investments, or business in India. The Income Tax Act requires NRIs to report and pay tax on income earned or received in India.
Long Answer: Even if you live in Canada, you must file taxes in India if you earn income from rent, investments, or business in India. The Income Tax Act requires NRIs to report and pay tax on income earned or received in India.
2. What is considered “foreign income” for Indian tax filing?
Short Answer: Income earned outside India.
Long Answer: Foreign income includes any salary, investment return, or business profit earned in Canada or any country outside India. For NRIs, this income is not taxable in India unless it’s received directly in an Indian account.
Long Answer: Foreign income includes any salary, investment return, or business profit earned in Canada or any country outside India. For NRIs, this income is not taxable in India unless it’s received directly in an Indian account.
3. Do NRIs in Canada have to pay tax in both countries?
Short Answer: Usually no, thanks to the DTAA.
Long Answer: India and Canada have a Double Taxation Avoidance Agreement (DTAA). It ensures you don’t pay tax on the same income twice. You can claim credit in one country for tax paid in the other.
Long Answer: India and Canada have a Double Taxation Avoidance Agreement (DTAA). It ensures you don’t pay tax on the same income twice. You can claim credit in one country for tax paid in the other.
4. Which ITR form should a Canadian resident (NRI) use?
Short Answer: Usually ITR-2.
Long Answer: If you are an NRI or a person with foreign income and don’t have business income in India, you should file using ITR-2. If you have business income in India, use ITR-3.
Long Answer: If you are an NRI or a person with foreign income and don’t have business income in India, you should file using ITR-2. If you have business income in India, use ITR-3.
5. What is the due date for filing ITR from Canada?
Short Answer: Generally July 31 each year.
Long Answer: For the financial year ending March 31, you must file by July 31 of the same year unless the government extends the deadline. NRIs can file online before this date.
Long Answer: For the financial year ending March 31, you must file by July 31 of the same year unless the government extends the deadline. NRIs can file online before this date.
6. Can I file my Indian tax return online from Canada?
Short Answer: Yes, absolutely.
Long Answer: You can log in to the Income Tax e-filing portal (https://www.incometax.gov.in) using your PAN and password. Everything can be completed online, including verification using Aadhaar OTP or digital signature.
Long Answer: You can log in to the Income Tax e-filing portal (https://www.incometax.gov.in) using your PAN and password. Everything can be completed online, including verification using Aadhaar OTP or digital signature.
7. Is PAN card mandatory for NRI tax filing?
Short Answer: Yes.
Long Answer: A Permanent Account Number (PAN) is required to file any ITR in India. If you don’t have one, apply online through the NSDL or UTIITSL website before starting your return.
Long Answer: A Permanent Account Number (PAN) is required to file any ITR in India. If you don’t have one, apply online through the NSDL or UTIITSL website before starting your return.
8. How do I show my Canadian salary in my Indian ITR?
Short Answer: Mention it as “Exempt Income.”
Long Answer: For NRIs, foreign salary isn’t taxable in India. However, you should declare it under the “Exempt Income” section for information purposes while filing your ITR.
Long Answer: For NRIs, foreign salary isn’t taxable in India. However, you should declare it under the “Exempt Income” section for information purposes while filing your ITR.
9. Do I need to report my Canadian bank accounts in my Indian tax return?
Short Answer: No, unless you are resident in India.
Long Answer: Only Indian residents must report foreign assets. If you are a non-resident or RNOR (Resident but Not Ordinarily Resident), you don’t need to disclose your Canadian bank details in ITR.
Long Answer: Only Indian residents must report foreign assets. If you are a non-resident or RNOR (Resident but Not Ordinarily Resident), you don’t need to disclose your Canadian bank details in ITR.
10. How is rental income from property in India taxed for NRIs in Canada?
Short Answer: It’s taxable in India.
Long Answer: Rent from Indian property is taxable in India, even for NRIs. Tenants must deduct 30% TDS before paying you. You can claim this TDS as credit when filing your ITR.
Long Answer: Rent from Indian property is taxable in India, even for NRIs. Tenants must deduct 30% TDS before paying you. You can claim this TDS as credit when filing your ITR.
11. Can I claim tax benefits under Section 80C as an NRI?
Short Answer: Yes, on some investments.
Long Answer: NRIs can claim 80C deductions for investments like life insurance, ELSS funds, and home loan principal repayment, up to ₹1.5 lakh annually.
Long Answer: NRIs can claim 80C deductions for investments like life insurance, ELSS funds, and home loan principal repayment, up to ₹1.5 lakh annually.
12. How can I verify my ITR from outside India?
Short Answer: Use electronic verification.
Long Answer: You can e-verify using Aadhaar OTP, net banking, or a digital signature certificate (DSC). Alternatively, you can post a signed ITR-V form to CPC Bengaluru within 30 days of filing.
Long Answer: You can e-verify using Aadhaar OTP, net banking, or a digital signature certificate (DSC). Alternatively, you can post a signed ITR-V form to CPC Bengaluru within 30 days of filing.
13. What is DTAA between India and Canada?
Short Answer: A tax treaty to avoid double taxation.
Long Answer: The Double Taxation Avoidance Agreement allows you to avoid paying tax twice on the same income in both India and Canada. You can claim tax credits under Article 23 of the treaty.
Long Answer: The Double Taxation Avoidance Agreement allows you to avoid paying tax twice on the same income in both India and Canada. You can claim tax credits under Article 23 of the treaty.
14. How can I claim foreign tax credit (FTC) in India?
Short Answer: File Form 67.
Long Answer: To claim a tax credit for taxes paid in Canada, submit Form 67 online before filing your ITR. You’ll need proof of tax payment and the relevant DTAA article.
Long Answer: To claim a tax credit for taxes paid in Canada, submit Form 67 online before filing your ITR. You’ll need proof of tax payment and the relevant DTAA article.
15. Do NRIs get refund of excess TDS?
Short Answer: Yes.
Long Answer: If TDS deducted on your Indian income is higher than your actual tax liability, you can claim a refund by filing your ITR from Canada. Refunds are credited directly to your Indian bank account.
Long Answer: If TDS deducted on your Indian income is higher than your actual tax liability, you can claim a refund by filing your ITR from Canada. Refunds are credited directly to your Indian bank account.
16. Can I file Indian ITR without Aadhaar?
Short Answer: Yes, for NRIs.
Long Answer: NRIs are not required to have an Aadhaar card for tax filing. You can still e-file using your PAN and verify through net banking or DSC.
Long Answer: NRIs are not required to have an Aadhaar card for tax filing. You can still e-file using your PAN and verify through net banking or DSC.
17. What happens if I miss the ITR deadline?
Short Answer: You can file a belated return.
Long Answer: If you miss the due date, you can file a late return by December 31 of the assessment year. A small penalty (₹1,000–₹5,000) may apply depending on your income.
Long Answer: If you miss the due date, you can file a late return by December 31 of the assessment year. A small penalty (₹1,000–₹5,000) may apply depending on your income.
18. Do I have to pay advance tax as an NRI?
Short Answer: Yes, if liability exceeds ₹10,000.
Long Answer: If your total Indian income tax for the year is more than ₹10,000, you must pay advance tax in installments during the year, even as an NRI.
Long Answer: If your total Indian income tax for the year is more than ₹10,000, you must pay advance tax in installments during the year, even as an NRI.
19. Can I file ITR from a foreign IP address?
Short Answer: Yes.
Long Answer: The Indian tax e-filing portal allows login and submission from anywhere in the world, including Canada. Just ensure a stable internet connection and correct time zone.
Long Answer: The Indian tax e-filing portal allows login and submission from anywhere in the world, including Canada. Just ensure a stable internet connection and correct time zone.
20. How do I pay Indian taxes from Canada?
Short Answer: Use online challan payment.
Long Answer: You can pay Indian taxes using the online portal at https://onlineservices.tin.egov-nsdl.com via debit/credit card, net banking, or through an authorized Indian bank account.
Long Answer: You can pay Indian taxes using the online portal at https://onlineservices.tin.egov-nsdl.com via debit/credit card, net banking, or through an authorized Indian bank account.
21. Do I have to convert my Canadian income into INR while filing?
Short Answer: Only for reporting.
Long Answer: If you report foreign income in your ITR, convert it to INR using the SBI TT buying rate as of March 31 of the financial year.
Long Answer: If you report foreign income in your ITR, convert it to INR using the SBI TT buying rate as of March 31 of the financial year.
22. Can I appoint someone in India to file my ITR?
Short Answer: Yes, using Power of Attorney.
Long Answer: You can authorize a trusted person in India through a Power of Attorney (POA) to file or sign your tax documents on your behalf.
Long Answer: You can authorize a trusted person in India through a Power of Attorney (POA) to file or sign your tax documents on your behalf.
23. Is Indian pension taxable for NRIs in Canada?
Short Answer: Yes, in India.
Long Answer: Pension received from India is taxable in India for NRIs. However, if tax is also paid in Canada, you can claim a DTAA credit while filing ITR.
Long Answer: Pension received from India is taxable in India for NRIs. However, if tax is also paid in Canada, you can claim a DTAA credit while filing ITR.
24. Do NRIs have to pay tax on mutual fund gains in India?
Short Answer: Yes, on Indian funds.
Long Answer: Capital gains from Indian mutual funds are taxable in India. Long-term and short-term gains have different rates. TDS is deducted automatically by the fund house.
Long Answer: Capital gains from Indian mutual funds are taxable in India. Long-term and short-term gains have different rates. TDS is deducted automatically by the fund house.
25. How can I check my refund status from Canada?
Short Answer: Through the e-filing portal.
Long Answer: Log in to your Income Tax e-filing account, go to “View Returns/Forms,” and check refund status. Refunds are processed by the CPC and credited to your Indian bank.
Long Answer: Log in to your Income Tax e-filing account, go to “View Returns/Forms,” and check refund status. Refunds are processed by the CPC and credited to your Indian bank.
26. Is NRE account interest taxable in India?
Short Answer: No.
Long Answer: Interest earned on NRE savings or fixed deposits is fully exempt from Indian income tax for NRIs, as long as you maintain NRI status.
Long Answer: Interest earned on NRE savings or fixed deposits is fully exempt from Indian income tax for NRIs, as long as you maintain NRI status.
27. Is NRO account interest taxable?
Short Answer: Yes.
Long Answer: Interest from NRO accounts is taxable in India at 30% plus surcharge and cess. You can claim a DTAA benefit to reduce the tax rate while filing ITR.
Long Answer: Interest from NRO accounts is taxable in India at 30% plus surcharge and cess. You can claim a DTAA benefit to reduce the tax rate while filing ITR.
28. Can I use a Canadian bank account for Indian tax refund?
Short Answer: No.
Long Answer: Refunds are only credited to an Indian bank account linked with your PAN and pre-validated in the e-filing portal. NRIs should use an NRO account for refunds.
Long Answer: Refunds are only credited to an Indian bank account linked with your PAN and pre-validated in the e-filing portal. NRIs should use an NRO account for refunds.
29. Do I need an Indian phone number for OTP verification?
Short Answer: Not mandatory.
Long Answer: OTP can be sent to your registered email if your Indian mobile number is inactive. For e-verification, net banking or DSC methods also work.
Long Answer: OTP can be sent to your registered email if your Indian mobile number is inactive. For e-verification, net banking or DSC methods also work.
30. Can I get professional help for filing ITR from Canada?
Short Answer: Yes, easily.
Long Answer: Many Indian tax consultants and CA firms offer NRI tax filing services online. You can share documents securely and file your ITR from Canada without visiting India.
Long Answer: Many Indian tax consultants and CA firms offer NRI tax filing services online. You can share documents securely and file your ITR from Canada without visiting India.
