International Tax Lawyer in Toronto: Compliance Tips for Indian Expatriates

Living abroad offers immense opportunities, but it also brings complex legal responsibilities—especially when it comes to international tax regulations. For Indian expatriates, OCI cardholders, and NRIs living in cities like Toronto, Vancouver, Calgary, Ottawa, Winnipeg, and Quebec, navigating cross-border taxation can be challenging. This is where a skilled international tax lawyer in Toronto becomes indispensable.

In this comprehensive guide, we decode the essentials of cross-border taxation Toronto, share tips for foreign income reporting, and offer legal strategies customised to Indians and NRIs residing in Canada.

Why Consulting an International Tax Lawyer in Toronto Matters for Indians in Canada

The biggest compliance challenge for NRIs and OCIs in Canada is managing tax liabilities in both India and Canada. With global income, properties, or financial investments spread across countries, knowing what, where, and how to report is crucial.

A proficient international tax lawyer in Toronto understands the unique tax obligations that Indian expatriates face and helps them comply with both Indian and Canadian laws, particularly by leveraging the Double Taxation Avoidance Agreement (DTAA) between the two countries.

1. Determining Tax Residency: The Core of Cross-Border Taxation Toronto

Indian Tax Residency Rules (Section 6, Income Tax Act, 1961)

Under Indian law:

A person staying in India ≥182 days during a financial year is a Resident.
If they stay ≥60 days in the year and ≥365 days over the previous four years, they may also be considered a Resident.
However, NRIs or PIOs visiting India are treated as Resident but Not Ordinarily Resident (RNOR) if their Indian income exceeds ₹15 lakh and they stay in India ≥120 days.

RNOR status is beneficial as global income is not taxed in India—only Indian-sourced income is.

Canadian Tax Residency Criteria

In Canada, residency is based on personal and economic ties:

A home, dependents, or spouse in Canada
Canadian bank accounts, vehicles, memberships
Length of stay and intentions

If you’re classified as a Canadian resident, you must report and pay tax on your global income.

2. DTAA: Double Taxation Relief for Indian Expats in Canada

Thanks to the India-Canada DTAA, Indians in Canada can claim a foreign tax credit for taxes paid in India, or vice versa. For example:

If you earn rental income from Delhi while living in Toronto, Canada will tax your global income, including the Indian rental. But under DTAA, you can claim credit in Canada for the taxes paid in India—avoiding double taxation.

A seasoned international tax lawyer in Toronto can help you interpret the DTAA for various income types such as salary, dividends, and capital gains.

3. Common Tax Issues Faced by NRIs in Canada

Foreign Income Reporting

As a resident of Canada, all foreign income (e.g., NRO account interest, rental income from India, capital gains, etc.) must be reported to the Canada Revenue Agency (CRA). Form T1135 is mandatory if total foreign property exceeds CAD 100,000.

Penalties for non-compliance are severe—working with an international tax lawyer in Toronto ensures your filings are accurate.

Real Estate and Property Compliance (RERA)

NRIs cannot purchase agricultural land in India. But they can buy residential or commercial property. Sales of property in India by NRIs attract capital gains tax. Long-term capital gains (after 24 months of holding) are taxed at 20% with indexation benefits.

TDS must be deducted by the buyer under Section 195.
Repatriation is allowed up to USD 1 million annually.
Forms 15CA and 15CB are needed for remittance.

Inheritance and Gifts

India: No inheritance tax; gifts from specified relatives are exempt.
Canada: Inherited assets may attract capital gains upon future sale.

For example, receiving a ₹10 lakh gift from your parents is non-taxable in India, but needs reporting in Canada. An international tax lawyer in Toronto will ensure FEMA and DTAA compliance.

FEMA Compliance for NRIs

FEMA mandates:

Resident accounts must be converted to NRO/NRE accounts upon attaining NRI status.
Property transactions must be reported appropriately.
Investment in Indian stocks must follow PIS (Portfolio Investment Scheme) guidelines.

4. Global Tax Planning: The Role of an International Tax Lawyer in Toronto

A good international tax lawyer in Toronto can help Indian expatriates:

Determine accurate residency status
Apply DTAA relief
Assist with T1135 filings and Indian ITRs
Legally minimise tax through global tax planning
Ensure FEMA compliance
Handle tax disputes with Indian or Canadian authorities

FAQs for NRIs & OCIs in Canada

Q1: I live in Vancouver and have rental income in Hyderabad. Do I pay tax twice?

Yes, unless you claim tax relief under the DTAA. Pay tax in India and claim a credit in Canada.

Q2: I sold Indian stocks while living in Calgary. How are they taxed?

Capital gains are taxable in India and must be reported in Canada. DTAA credit applies. Get Form 16A from your broker.

Q3: Can I receive a gift of ₹20 lakh from my father in India while living in Ottawa?

Yes. Gifts from parents are tax-free in India. In Canada, report the funds to avoid audit triggers. Use banking channels.

Q4: I inherited property in Punjab. What do I need to do from Toronto?

Obtain a succession certificate or probate in India. If you sell, pay capital gains tax in India and report the income in Canada.

Q5: I have an NRO account. Is the interest taxable?

Yes, at 30% in India. Claim credit in Canada under DTAA. File Form T1135 if total Indian assets exceed CAD 100,000.

Outlook: A Global Compliance Strategy for Indian Expats

Managing tax obligations across India and Canada requires a holistic strategy. With evolving tax rules, tighter foreign income regulations, and mandatory disclosures, proactive tax planning is non-negotiable. Whether you’re based in Toronto, Vancouver, or Quebec, consult a seasoned international tax lawyer in Toronto to protect your finances, avoid penalties, and stay compliant.

Conclusion

For Indian expatriates, the maze of international tax regulations in Toronto is best navigated with expert help. From DTAA benefits to property compliance and foreign income reporting, the stakes are high. Legal guidance from an international tax lawyer in Toronto ensures you’re not just compliant—but also optimised financially for both Indian and Canadian jurisdictions.

About LawCrust Legal Consulting

LawCrust Legal Consulting, a subsidiary of LawCrust Global Consulting Ltd., is a trusted legal partner for NRIs and Indians across the globe. Backed by a team of over 70 expert lawyers and more than 25 empanelled law firms, we offer a wide range of legal services both in India and internationally. Our expertise spans across legal finance, litigation management, matrimonial disputes, property matters, estate planning, heirship certificates, RERA, and builder-related legal issues.

In addition to personal legal matters, LawCrust also provides expert support in complex corporate areas such as foreign direct investment (FDI), foreign institutional investment (FII), mergers & acquisitions, and fundraising. We also assist clients with OCI and immigration matters, startup solutions, and hybrid consulting solutions. Consistently ranked among the top legal consulting firms in India, LawCrust proudly delivers customised legal solutions across the UK, USA, Canada, Europe, Australia, APAC, and EMEA, offering culturally informed and cross-border expertise to meet the unique needs of the global Indian community.

International Tax Lawyer in Toronto for Indians: Your Key to Cross-Border Tax Compliance