Hello Mr. Sundar,

Thank you for your message, and congratulations to you and your wife on your upcoming move back to India.

Please note the comments below are general information only. Whether you will be considered a non-resident of Canada is based on your overall facts (especially your residential ties), not just one item in isolation.

1) Keeping a Canadian bank account to receive CPP / pension deposits

Keeping one Canadian bank account to receive CPP, OAS, or pension deposits does not, by itself, prevent you from becoming a non-resident.

CRA generally looks most heavily at your primary residential ties, such as:

• A home available to you in Canada
• A spouse/dependants remaining in Canada
• Canadian provincial health coverage
• Other significant ongoing ties

If, after your move, your life is clearly centered in India and your primary Canadian ties are severed, it is often possible to be treated as a non-resident, even if you keep a Canadian bank account.

Also, once you are non-resident, pension payers typically apply non-resident withholding tax. In many cases, this can be reduced under the Canada–India tax treaty once the correct information/paperwork is in place.

2) Best option for your registered and non-registered investments

The “best option” depends on what you hold, the approximate values, and how you plan to draw funds in retirement. In general:

• RRSP / RRIF: These can usually be kept in Canada after you become non-resident. Withdrawals are generally subject to non-resident withholding tax, often reducible under the Canada–India tax treaty depending on the type of payment.
• TFSA: Canada treats TFSA growth as tax-free, but many countries do not recognize it the same way. We recommend reviewing India-side tax treatment and reporting before deciding whether to keep or collapse the TFSA.
• Non-registered investments: On becoming non-resident, Canada may apply a deemed disposition (“departure tax”) on certain assets. After departure, ongoing Canadian tax may still apply depending on the type of income (e.g., dividends, certain trust income), often through withholding at source.

What we need from you to advise properly

To provide specific guidance (and avoid overpaying tax), please confirm:

1. Your planned departure date (and whether you will keep a home in Canada that is available to you)
2. Whether your spouse will depart at the same time
3. Whether you will keep OHIP/health coverage, driver’s licence, vehicle, etc.
4. Your expected income sources: CPP, OAS, employer pension, RRSP/RRIF withdrawals, and any other income
5. A summary of your accounts: RRSP/RRIF, TFSA, non-registered and approximate values
6. Whether you own any Canadian real estate (and whether it will be sold or rented)

Next step

Given the cross-border and treaty considerations, we recommend a paid planning call so we can confirm your non-resident position and provide practical next steps for your pensions and investments. You can book here: madanca.com/contact-us.