Quebec Tax Lawyer Advice for Indians and NRIs Facing Canada-India Taxation Complexities

For Indians, Non-Resident Indians (NRIs), and Overseas Citizens of India (OCIs) residing in Quebec—whether in Montreal, Quebec City, Laval, Gatineau, or Sherbrooke—navigating the complex landscape of cross-border taxation between Canada and India can be overwhelming. With financial and personal ties across two jurisdictions, understanding tax residency rules, income sourcing, double taxation avoidance, and foreign asset reporting is essential. This is where a Quebec tax lawyer becomes indispensable. A qualified Quebec tax lawyer provides expert guidance on Canada-India tax compliance, DTAA benefits, and optimisation strategies specifically customised for the Indian diaspora.

Why You Need a Quebec Tax Lawyer Specialising in Canada-India Cross-Border Taxation

Indians, NRIs, and OCIs in Quebec often find themselves caught between two distinct tax regimes: Canada’s federal and Quebec provincial tax systems and India’s Income Tax Act. Whether you’re earning rental income from Indian property, selling capital assets in India, managing NRE/NRO accounts, receiving gifts or inheritances, or repatriating funds, a Quebec tax lawyer can help you avoid legal complications and financial losses. These experts bridge the knowledge gap between Canadian and Indian tax systems, offering solutions that ensure tax efficiency and full compliance.

1. Key Areas Where a Quebec Tax Lawyer Can Help

Determining Tax Residency

Canadian Tax Residency: Determined by significant residential ties (home, spouse/dependents, personal property) and physical presence (generally 183+ days in Canada). Even without spending 183 days, you may be a “factual resident.”
Indian Tax Residency (Section 6, ITA 1961): An individual is a resident in India if they are in India for 182+ days in a financial year, or 60+ days in that year and 365+ days over the last 4 years. Exceptions apply for Indian citizens leaving for employment abroad.

Your Quebec tax lawyer evaluates both systems to determine where you are considered tax-resident—and when dual residency applies, they guide you using DTAA provisions.

Applying the India-Canada DTAA

Identify which country has primary taxation rights for income (e.g., Article 6 for real estate, Article 11 for interest, Article 13 for capital gains).
Claim foreign tax credits in Canada for taxes paid in India.
Ensure DTAA benefits are properly declared and documented during tax filing.

Income from Indian Sources

Understand TDS rates (e.g., 31.2% on rental income, 20%–30% on capital gains).
Claim available deductions in India (standard 30% on rentals, municipal taxes, loan interest).
Ensure timely and compliant filing of Indian Income Tax Returns (ITR) and Canadian tax returns.

Reporting Foreign Assets and Accounts in Canada

Canadian residents must file Form T1135 to report specified foreign property over CAD $100,000, including:

Indian real estate
NRE/NRO accounts
Mutual funds, stocks, FDs in India

Repatriation of Funds from India

You can remit funds to Canada from the sale of property, inheritance, or income in India through NRE/NRO accounts. To do this, you must follow legal procedures under the Foreign Exchange Management Act (FEMA), obtain Form 15CA/CB certifications, and get approval from your Indian bank.A tax lawyer assists.

2. Real-Life Example

An NRI in Quebec City earns rental income from an apartment in Chennai. The tenant in India deducts 31.2% TDS before remitting the rent. A Quebec tax lawyer helps:

File an Indian tax return to claim deductions (standard 30%, municipal tax, loan interest).
Claim the TDS paid as a foreign tax credit on the Canadian tax return.
Report the Indian property on Form T1135 and ensure compliance with Canadian CRA rules.

Frequently Asked Questions (FAQs)

Q1: I’m an NRI in Montreal and planning to sell my apartment in Bengaluru. What are the tax implications?

Answer: The capital gain is taxable in India. If held for over 2 years, it’s taxed at 20% with indexation benefits (LTCG). Short-term gains are taxed at slab rates. TDS of 20%-30% applies. Your Quebec tax lawyer will help you apply for a lower TDS certificate and guide you in repatriating the net proceeds to Canada using Form 15CA/CB.

Q2: I live in Laval, Quebec, and have an NRE and NRO account in India. Are the interest earnings taxable?

Answer: Yes. Interest on NRO accounts is taxable in India. Interest from NRE accounts, though exempt for NRIs, is considered taxable for Canadian residents. Under the DTAA, Canada allows a foreign tax credit for taxes paid in India, and your lawyer can guide you through correct reporting.

Q3: I received a large gift from my father in India. Do I need to report it in Canada?

Answer: Gifts from close relatives are not taxable in India. In Canada, you don’t pay tax on the gift itself, but you must report any income it generates, such as interest or rent. If your total Indian holdings exceed CAD $100,000, you must report the gift and related assets using Form T1135.

Q4: I recently returned to India after 10 years in Quebec. Am I taxed in India on my foreign income?

Answer: You may be eligible for RNOR status for up to 2 years, during which your global income is not taxable in India (unless from a business/profession in India). A tax lawyer can confirm your RNOR eligibility and advise you on tax planning during the transition.

Q5: I own rental property in Pune. What deductions can I claim?

Answer: NRIs can claim:

30% standard deduction
Municipal taxes
Home loan interest
The tenant must deduct 31.2% TDS. A Quebec tax lawyer ensures proper Indian filing to claim deductions and refunds, and also helps you report this income in Canada and claim a foreign tax credit.

About LawCrust

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.

Canada-India Taxation Guide: Quebec Tax Lawyer Help for Indians, NRIs & OCIs