NRIs in Canada: Investing in Indian Red Sandalwood
Canada taxes worldwide income and requires foreign-property reporting. What Canada-based NRIs should weigh, starting, as always, with FEMA.
Published 2024-10-08, Updated 2026-07-05, By Shree Editorial Desk
Quick answerFor Canada-based NRIs and OCIs, an Indian farmland investment sits between two systems: India’s FEMA restriction on agricultural land, and Canada’s residence-based worldwide taxation plus foreign-property reporting (such as Form T1135 above the reporting threshold). The India to Canada tax treaty can relieve double taxation. As with every NRI, the honest starting point is that direct purchase of Indian agricultural land is generally not permitted, and any pathway needs individual advice. This article orients Canada-based investors to the key considerations; it is general information, not legal or tax advice.
FEMA first
Under FEMA, NRIs and OCIs generally cannot directly buy agricultural land in India, wherever they live. Any compliant pathway depends on your circumstances and needs independent counsel, that rule comes before any tax discussion.
Your Canadian tax layer
Canadian residents are generally taxed on worldwide income.
Foreign property above the reporting threshold may require Form T1135.
The India to Canada DTAA can relieve double taxation on Indian-source income.
India side and repatriation
Indian-source income is taxable in India (often via TDS); repatriation runs through your NRO account, generally up to USD 1 million per financial year with Form 15CA/CB.
Next steps
Confirm FEMA eligibility with counsel, speak to a Canada to India cross-border advisor, and book an NRI consultation. See our NRI hub for the shared framework.
SH
Shree Editorial Desk
Shree Properties & Projects, editorial
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