Tax Attorney Toronto Helping NRIs File and Resolve Global Income Disputes

For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) living in Canada, managing international tax compliance can be overwhelming. Whether you reside in Toronto, Vancouver, Calgary, Alberta, Quebec, Winnipeg, or Ottawa, understanding your obligations in both India and Canada is crucial. Hiring a tax attorney Toronto with expertise in cross-border taxation can help you file correctly, avoid penalties, and resolve CRA disputes effectively.

Why NRIs in Canada Need a Tax Attorney Toronto

NRIs typically earn income across two tax jurisdictions—India and Canada. This dual exposure often leads to confusion and the risk of double taxation. While the Canada Revenue Agency (CRA) taxes Canadian residents on global income, India taxes NRIs on Indian-sourced income. Misreporting, delay in disclosure, or misunderstanding DTAA provisions can result in serious consequences.

Examples include:

Rental income from a property in Delhi
Capital gains from shares sold in an Indian company
Interest from NRO accounts

All of these require careful reporting. A tax attorney Toronto ensures compliance with both the Indian Income Tax Act and Canadian tax laws, guiding you through each legal step.

1. Understanding Indian Resident Tax Status and Canadian Tax Residency

Correctly determining your tax residency in both countries is essential.

In India

Non-Resident: Less than 182 days in India in a financial year
Resident but Not Ordinarily Resident (RNOR): Special category for returning NRIs
Resident Indian: Global income is taxable

The Finance Act, 2020 has made rules stricter, especially for high-income NRIs.

In Canada

Tax residency is based on residential ties, not just days stayed. Even if you’re a non-resident in India, you may be considered a resident of Canada and must report global income.

This makes understanding and applying the India-Canada Double Taxation Avoidance Agreement (DTAA) vital. Your tax attorney Toronto helps you file Form 67 in India to claim foreign tax credits in Canada, preventing double taxation on income like rent or capital gains.

2. How a Tax Attorney Toronto Resolves CRA Disputes and Tax Issues

The CRA is increasingly aggressive in identifying foreign income using the Common Reporting Standard (CRS) and FATCA. If they find inconsistencies, they can initiate audits or reassessments. A tax attorney Toronto assists you by:

Responding to CRA notices
Filing objections within 90 days
Submitting Voluntary Disclosures
Contesting reassessments
Negotiating settlements

3. Common Cross-Border Legal Issues for NRIs

Capital Gains on Indian Property

Under Section 45 of India’s Income Tax Act, capital gains are taxable in India. You can claim exemptions under Section 54 for reinvestments. In Canada, these gains are also taxable. The DTAA allows you to avoid double taxation with a foreign tax credit.

Rental Income

Rental income is taxed in India with standard deductions under Section 24(a). This income must also be reported in Canada. A tax attorney Toronto helps you coordinate claims under both systems.

Inheritance and Gifts

Inheritance is generally not taxed in India but the income generated from inherited assets is. Canada may require you to report large gifts or foreign assets. Legal advice ensures compliance.

Bank Accounts

NRIs use NRE and NRO accounts. Interest from NRO accounts is taxable in India and reportable in Canada. NRE interest is exempt in India but still reportable in Canada. Your tax attorney Toronto ensures all income is accurately declared.

4. Steps NRIs Should Take to Handle Global Tax Issues

Assess Tax Residency in both India and Canada
Gather Documentation: income proofs, property documents, account statements
Consult a Tax Attorney Toronto: Get customised legal advice
Apply DTAA Benefits: File Form 67 (India) and Form T2209 (Canada)
File Returns On Time: Penalties under Section 234F in India can be hefty
Maintain Records: Critical for audits or voluntary disclosures

FAQs

Q1: I live in Toronto and earn rent from property in Bangalore. Do I pay tax in both countries?

Yes. Pay tax in India and report in Canada. Claim a foreign tax credit via DTAA. A tax attorney Toronto helps with Forms T2209 and 67.

Q2: I sold Indian shares from Calgary. What taxes apply?

Short-term capital gains are taxed at 15% in India. Long-term gains (over ₹1 lakh) are taxed at 10%. Report in Canada too, and claim tax credits under DTAA.

Q3: CRA sent me a notice for Indian bank accounts. What should I do?

Respond promptly. A tax attorney Toronto helps draft an accurate response or file a Voluntary Disclosure if needed.

Q4: I’m moving from Winnipeg to India temporarily. What happens to my tax residency?

If you retain strong ties to Canada, you may remain a tax resident. In India, exceeding 182 days could make you a resident. A tax expert ensures proper classification.

Q5: Can I transfer funds from my NRO account to Canada?

Yes, up to USD 1 million per year under FEMA, post-tax. Ensure you have Form 15CA/15CB and proper reporting in Canada.

Outlook: Global Tax Transparency Is Here to Stay

The global tax environment is evolving. Countries like India and Canada are sharing financial data and tightening compliance through CRS and treaties. For NRIs in Toronto, Calgary, and other Canadian cities, proactive legal advice from a tax attorney Toronto ensures peace of mind, reduces financial risks, and keeps you fully compliant.

Conclusion

Managing international tax, navigating CRA disputes, and understanding your Indian resident tax status isn’t easy—but with expert legal help, it becomes manageable. A tax attorney Toronto ensures accurate filings, represents you in audits, and helps you optimise your tax position using Indian and Canadian laws. Don’t wait for a tax notice—get ahead with strategic, expert-led planning.

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.

Hire The Best Tax Attorney Toronto for NRIs Global Income Disputes