Financial Pre-Departure Checklist
| Task | Timeline | Details |
|---|---|---|
| Convert bank accounts to NRO/NRE | Before departure | RBI requires this for NRIs |
| Get international credit card | 1-2 months before | Forex-friendly card for first few weeks |
| Arrange money transfer method | Before departure | Set up Wise, Remitly account |
| Get proof of funds letter | Before departure | For visa/border entry |
| Close unnecessary Indian accounts | Before/after | Keep 1-2 for receivables |
| Cancel Indian subscriptions | Before departure | Avoid charges |
| Get medical records | Before departure | For Canadian health insurance |
| Carry some CAD cash | Before departure | $500-$1,000 for first few days |
First-Week Financial Setup
| Action | Provider | Notes |
|---|---|---|
| Open Canadian bank account | CIBC, TD, RBC, or Scotiabank | Many offer newcomer packages |
| Get SIN (Social Insurance Number) | Service Canada | Needed for work and banking |
| Get a phone plan | Public Mobile, Fido, Koodo | $25-$45/month for basics |
| Apply for newcomer credit card | CIBC, BMO (no credit history needed) | Build credit immediately |
| Sign up for HISA | EQ Bank, Wealthsimple | Park emergency funds at 4%+ |
Best Newcomer Bank Accounts
| Bank | Newcomer Package | Features |
|---|---|---|
| CIBC | Free chequing for 1 year | No minimum, free e-Transfers |
| Scotiabank (StartRight) | Free chequing for 1-3 years | International money transfer deals |
| TD | Free chequing for 6 months | Longest branch hours |
| RBC | Free chequing for 1 year | Largest ATM network |
| BMO | NewStart Program | Free chequing + credit card offer |
| HSBC | Global banking | Easier if you bank with HSBC in India |
Transferring Money from India to Canada
| Method | Exchange Rate | Fee | Speed | Best For |
|---|---|---|---|---|
| Wise (TransferWise) | Mid-market rate | 0.5-1.5% | 1-2 days | Best overall rate |
| Remitly | Close to mid-market | $4-$10 | 1-3 days | Convenience |
| ICICI Money2India (reverse) | Bank rate | Higher | 2-5 days | ICICI customers |
| SBI/HDFC wire transfer | Bank rate (2-4% markup) | $15-$40 | 3-5 days | Large transfers |
| Western Union | Below mid-market | $5-$20 | Same day-2 days | Cash pickup |
| Carry INR and convert in Canada | Airport/bank rate (poor) | High spread | Instant | Emergency only |
LRS (Liberalised Remittance Scheme) Rules
| Rule | Details |
|---|---|
| Annual limit | $250,000 USD per financial year per person |
| TCS (Tax Collected at Source) | 5% above ₹7 lakh ($10,000 USD) for education; 20% above ₹7 lakh for other purposes |
| TCS refund | Claimable on Indian tax return |
| Purpose | Education, maintenance, investments abroad |
| Documentation | PAN card, reason declaration, bank form |
NRO vs NRE Accounts
| Feature | NRO Account | NRE Account |
|---|---|---|
| Purpose | Indian income (rent, dividends) | Foreign income parked in India |
| Currency | INR | INR (from foreign currency) |
| Tax on interest (India) | Taxable (30% TDS) | Tax-free |
| Repatriation | Up to $1M/year (with CA certificate) | Fully repatriable, no limit |
| Joint account | With resident Indian | With another NRI only |
| Best for | Collecting Indian rental income, dividends | Sending money from Canada to India |
Cost of Living Comparison: India vs Canada
| Category | India (Major City, ₹/month) | Canada (Major City, CAD/month) |
|---|---|---|
| Rent (1-bed) | ₹15,000-₹35,000 | $1,500-$2,500 |
| Groceries | ₹8,000-₹15,000 | $400-$700 |
| Transportation | ₹3,000-₹8,000 | $100-$200 (transit pass) |
| Dining out (meal for 2) | ₹800-₹2,000 | $60-$100 |
| Utilities | ₹3,000-₹6,000 | $150-$300 |
| Healthcare | Variable (private) | $0 (public) + $50-$150 (supplemental) |
| Internet | ₹500-₹1,500 | $50-$80 |
| Phone | ₹300-₹1,000 | $25-$55 |
Tax Considerations
Canadian Tax Obligations
| Item | Details |
|---|---|
| Tax residence | Become Canadian tax resident on arrival date |
| Worldwide income | Report all income (Indian + Canadian) to CRA |
| Indian property rental income | Report in Canada; claim foreign tax credit |
| NRE interest | Tax-free in India but taxable in Canada |
| NRO interest | Taxed in India (30% TDS) + report in Canada (foreign tax credit) |
| Capital gains on Indian assets | Report in Canada; foreign tax credit for Indian taxes paid |
| Tax treaty | India-Canada DTAA prevents double taxation |
| Filing deadline | April 30 (employment income) or June 15 (self-employed) |
Common Tax Mistakes for Indian Newcomers
| Mistake | Consequence |
|---|---|
| Not reporting Indian rental income | CRA penalties + interest |
| Not disclosing foreign property (T1135) | $2,500 penalty if assets over $100,000 CAD |
| Not converting NRO/NRE properly | India’s FEMA penalties |
| Not claiming foreign tax credits | Double taxation |
| Selling Indian property without reporting | Major tax event in Canada |
Building Credit in Canada
| Step | Timeline | Details |
|---|---|---|
| 1. Get a secured credit card | Week 1 | Deposit $500-$1,000, get a credit limit |
| 2. Or get a newcomer credit card | Week 1 | CIBC, BMO, TD offer no-history cards |
| 3. Use it for small purchases | Monthly | Spend 20-30% of limit |
| 4. Pay full balance on time | Monthly | Never miss a payment |
| 5. Get a phone plan in your name | Month 1 | Builds credit history |
| 6. Apply for regular credit card | Month 6-12 | Use Credit Karma to check score |
| Expected credit score after 1 year | 680-720 (if managed well) |
Government Benefits for Newcomers
| Benefit | Eligibility | Amount |
|---|---|---|
| GST/HST Credit | After filing first tax return | $350-$500/year (single) |
| Canada Child Benefit | PR/citizen with children | $600-$700+/month per child under 6 |
| Climate Action Incentive | After filing taxes | $200-$400/year |
| Provincial health insurance | After 0-3 month waiting period | Free doctor/hospital visits |
| Settlement services | PR holders | Free language, job help, integration |
Indian PPF, EPF, and NPS Considerations
| Account | After Becoming NRI |
|---|---|
| PPF (Public Provident Fund) | Can continue until maturity; no new account opening |
| EPF (Employee Provident Fund) | Can withdraw; taxable in Canada |
| NPS (National Pension System) | Can continue; partial withdrawal rules apply |
| Life insurance (India) | Can continue; premiums payable from NRO |
| Mutual funds (India) | Can continue holding; new SIPs may be restricted |
| Real estate (India) | Can own; rental income taxable in both countries |
Recommended Financial Setup Timeline
| Timeline | Action |
|---|---|
| Month 1 | Bank account, SIN, phone, newcomer credit card |
| Month 1-3 | Emergency fund in HISA, job search |
| Month 3-6 | Open TFSA, start investing (if employed), file T1135 if applicable |
| Month 6-12 | Build credit score to 680+, RRSP if employer match |
| Year 1+ | First Canadian tax return, claim GST credit, FHSA if planning to buy home |
| Year 2+ | Review NRO/NRE accounts, consider consolidating Indian assets |