🇨🇦 India–Canada DTAA
India–Canada tax treaty
Signed 1996 · notified 1997. A practitioner's reference, not legal advice — confirm positions against current text and protocols before acting.
Highlights
- ·Comprehensive treaty, MLI-modified
- ·Important for NRIs in Canada with Indian-source income
Withholding rates
| Income | Treaty rate | Domestic rate | Note |
|---|---|---|---|
| Dividends | 15% / 25% | 20% | — |
| Interest | 15% | 20% | — |
| Royalties / FTS | 10% / 15% / 20% | 10% | — |
| Capital gains (shares) | Per domestic law | Per s.111A / 112A | — |
Treaty rate available only on furnishing TRC, Form 10F and beneficial-owner declaration. PPT / GAAR / LOB tests may further restrict access.
Permanent establishment
Standard OECD-model PE definition.
Residency tie-breaker
OECD-model.
FTC mechanism
India: Form 67 + Rule 128. Canada: federal + provincial FTC.
Common use cases
- ✓Canadian residents receiving Indian rental / dividend / pension income
- ✓Indians on work permit / PR in Canada — residency analysis
- ✓RRSP / TFSA — taxability in India once resident
Pitfalls we see
- !TFSA is NOT tax-free in India — fully taxable to Indian resident
- !Departure tax in Canada on becoming non-resident
Have an India–Canada fact pattern?
We give a one-page written position with treaty cites and FTC computation, usually within 3 working days.
Request a written position