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Guide · Leaving Canada

Moving back to India from Canada: OCI, NRI accounts and RNOR tax status

Moving back to India means closing out your Canadian tax residency, sorting your status in India, and timing your Indian tax residency well. The resident but not ordinarily resident (RNOR) status can keep your foreign income out of Indian tax for a few years.

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Key takeaways

  • In Canada: file a final return, check departure tax, stop TFSA contributions and keep your RRSP if useful
  • Years paying into India’s EPS can help you qualify for OAS abroad under the Canada-India agreement (in force August 1, 2015)
  • If you became a Canadian citizen, India does not allow dual citizenship: you need an OCI card or visa, not an Indian passport
  • India taxes you as a resident if you spend 182 days or more there in a financial year (or 60 days plus 365 days in the previous 4 years)
  • Returning after many years abroad usually gives you RNOR status first, so most foreign income is not taxed in India for a time

Who this guide is for

Who this page is for: people of Indian origin living in Canada, as permanent residents or Canadian citizens, who plan to move back to India for good or for several years. It covers the Canadian side in detail and gives an overview of Indian rules. Confirm Indian rules with the Income Tax Department, the Reserve Bank of India (RBI) and the OCI services portal, or an Indian chartered accountant.

The Canadian side: tax and accounts

  • Final return: report world income up to your departure date. You become a non-resident on the latest of the day you leave, the day your family leaves, or the day you become resident in India. See the leaving Canada tax guide.
  • Departure tax: non-registered shares and funds, crypto and property in India (if you bought it while living in Canada) may be deemed sold. If you lived in Canada 60 months or less in the last 10 years, property you brought with you is exempt. Estimate it with the departure tax calculator.
  • RRSP: you can keep it. Withdrawals as a non-resident face 25% Canadian withholding unless the Canada-India tax treaty lowers it for that payment type. India may also tax the income once you are ordinarily resident.
  • TFSA: keep it if you like, but do not contribute (1% a month tax). India does not treat it as tax-free. See TFSA after leaving.
  • Benefits: the Canada child benefit and the Canada Groceries and Essentials Benefit stop.

OAS and CPP when you live in India

CPP can be paid to you in India, based on your contributions.

OAS is paid abroad only if you lived in Canada at least 20 years after age 18. Under the Canada-India social security agreement, which came into force on August 1, 2015, Canada may count years you contributed to India’s Employees’ Pension Scheme (EPS) as years of residence to help you qualify. The amount is still based only on your years in Canada (years ÷ 40). Refunded EPS contributions cannot be used.

Example: 16 years in Canada plus 8 years in EPS = 24 years counted. You qualify to be paid in India, at 16/40 of the full OAS. Check your case with the OAS abroad checker.

Non-resident tax is withheld from OAS and CPP unless a treaty rate applies. The Guaranteed Income Supplement stops after 6 months outside Canada.

Your status in India: Indian passport or OCI

  • Still an Indian citizen (Canadian PR): you can return on your Indian passport. If you leave Canada for good, think about your PR: you need 730 days in Canada every 5 years to keep it. See will I lose my PR?
  • Became a Canadian citizen: India does not allow dual citizenship. You must renounce Indian citizenship (and surrender your Indian passport) and can then apply for an Overseas Citizen of India (OCI) card. OCI gives you a lifelong multiple-entry visa and the right to live and work in India, with some limits (for example, no voting and limits on buying farmland).

OCI applications for people in Canada are made online through the OCI services portal and processed by India’s missions in Canada through their service provider. Fees and steps change from time to time, so check the official portal for the current fee before you apply.

Indian tax residency and RNOR

India’s tax year runs from April 1 to March 31. You are a resident of India for a year if either is true:

  • you are in India 182 days or more in that year, or
  • you are in India 60 days or more in that year and 365 days or more in the 4 years before. For Indian citizens and people of Indian origin coming on a visit, the 60 days becomes 182 days (or 120 days if Indian income is over ₹15 lakh).

A resident is not ordinarily resident (RNOR) if they were a non-resident in 9 of the 10 previous years, or were in India for 729 days or fewer in the 7 previous years. As an RNOR, income earned outside India is generally not taxed in India (unless it comes from a business controlled in India or a profession set up there). Someone returning after 10 or more years abroad usually has about 2 years as RNOR.

Use the RNOR years to plan: for example, take RRSP withdrawals, sell foreign investments or close foreign accounts while your foreign income is not taxed in India. Check the timing with an Indian chartered accountant.

NRE, NRO and FCNR accounts after you return

Under India’s foreign exchange rules (FEMA), non-resident accounts are for non-residents. When you return to live in India:

  • NRE and NRO accounts must be changed (redesignated) to resident accounts. Tell your bank you have returned.
  • FCNR(B) deposits can usually stay until they mature, then convert.
  • You can open a Resident Foreign Currency (RFC) account to keep foreign currency you bring back.
  • Once you are resident and ordinarily resident, you must report your foreign assets (including Canadian bank, RRSP and TFSA accounts) on Schedule FA of your Indian return.

Moving money from Canada to India? Compare costs on our send money to India page. For the newcomer view of India-Canada money and documents, see the India country hub.

A simple timeline

  1. 6 to 12 months before: decide on PR or citizenship, OCI timing, and which accounts to keep. List assets for departure tax.
  2. 3 months before: stop TFSA deposits, give notice on housing, check health coverage until you leave.
  3. On departure: record your departure date and asset values. Tell Canadian banks you are non-resident.
  4. After arrival in India: redesignate NRE/NRO accounts, open an RFC account if needed, and track your days for residency.
  5. By April 30 next year: file your final Canadian return (with T1161 if needed). File your Indian return by India’s deadline.

Common questions

Can I keep my Canadian PR if I move back to India?
Only if you meet the residency obligation of 730 days in Canada in every 5-year period. If you stay away longer, you can lose PR status after an officer’s decision.
Can I have both Indian and Canadian citizenship?
No. India does not allow dual citizenship. Canadian citizens of Indian origin can apply for an OCI card instead.
Do years in India count toward OAS?
Years you paid into India’s Employees’ Pension Scheme can count as Canadian residence to help you qualify, under the Canada-India agreement. They do not increase the OAS amount.
What is RNOR status?
Resident but not ordinarily resident. It applies to returning residents who were non-resident in 9 of the last 10 years or spent 729 days or fewer in India in the last 7 years. Most foreign income is not taxed in India during RNOR years.
Do I have to close my NRE account when I return?
You must tell your bank and convert it to a resident account. FCNR deposits can usually run until maturity.

Sources

Checked against these sources on October 5, 2026. Spotted something out of date? Tell us.

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GuideLeaving Canada tax guide
GuideWill I lose my PR?

General information, not legal advice. Immigration rules change often and depend on your situation. Check IRCC or speak with a licensed consultant (RCIC) or lawyer before you apply.