Mohali Owners In Canada May Skip T1135 Under $200,000 कनाडा में बसे मोहाली मालिक $200,000 से कम पर T1135 से छूट सकते हैं ਕੈਨੇਡਾ ਵਸਦੇ ਮੋਹਾਲੀ ਮਾਲਕ $200,000 ਤੋਂ ਘੱਟ ਉੱਤੇ T1135 ਤੋਂ ਛੁੱਟ ਸਕਦੇ ਹਨ

Canada's federal budget, tabled on the fifth of November, proposes to double the cost threshold at which a resident must file the T1135 foreign property form, from one hundred thousand dollars to two hundred thousand. For a Canadian resident who owns a rented flat in Mohali or a plot bought as an investment, that can mean no T1135 at all once the change applies. It would not apply to the return due next spring. The budget says the measures would apply to taxation years that end after two thousand and twenty six, so the first year to benefit is the one that runs through two thousand and twenty seven.

The same chapter lifts the band for the short version of the form. Owners whose foreign property cost less than two hundred and fifty thousand dollars can tick categories today instead of reporting each asset in detail. The budget proposes to raise that band to five hundred thousand.

What the budget text says

The measure sits in chapter six of the budget, under a heading about making it easier for Canadians to manage their taxes. The government proposes to raise the one hundred thousand dollar threshold for filing the Foreign Income Verification Statement, which is the formal name of the T1135, to two hundred thousand dollars. It says the change "would exempt approximately a third of all current filers from the obligation to file." It adds that the Canada Revenue Agency would also raise the simplified reporting threshold from less than two hundred and fifty thousand dollars to less than five hundred thousand.

It is a budget proposal. It becomes law only when Parliament passes the implementing legislation, and the wording can still change before then.

Where a Mohali home sits in the form

The T1135 is about cost, not value. The test is the total cost of a resident's specified foreign property at any time in the year, converted into Canadian dollars at the rate when each asset was bought. Rising Mohali prices do not push an owner over the line. What was paid does.

Real estate outside Canada counts as specified foreign property unless it is personal use property. A flat in Aerocity let out to a tenant counts. So does a GMADA plot or a plot in an Aerotropolis pocket held to sell later. A family home in Mohali used mainly by the owner or relatives when they visit generally does not. Our earlier piece on [a Mohali home rented out and the T1135 limit](/article/394-mohali-home-rented-out-counts-toward-canada-s-t1135-limit) sets out which side of that line a home falls on, and that test does not change under the budget.

The threshold is counted across everything a resident holds abroad, not property by property. Money in an NRO account and fixed deposits in an Indian bank goes into the same total as the Mohali flat, and so do shares held in India. An owner whose flat cost well under two hundred thousand dollars can still be over the limit once the bank balance and any shares are added.

Joint owners count their own share. A husband and wife who bought a Mohali flat together each look at half of its cost when they test the threshold.

What the new limit means in rupees

At an exchange rate of around sixty rupees to the Canadian dollar, two hundred thousand dollars is one crore twenty lakh rupees. That is MA's arithmetic, and the rate an owner must use is the one on the date of purchase, which has moved a good deal over the last decade. A flat bought for seventy or eighty lakh rupees some years ago, with little else held in India, is likely to fall under the new limit. A plot bought for a crore and a half is likely to stay over it.

The simplified band works the same way. Today an owner with a cost between two hundred and fifty thousand and five hundred thousand dollars has to give, for each asset, the country, the highest cost in the year, the year end cost and the income it produced. Under the proposal that owner would be able to use the short category form instead.

What does not change

The rent does not stop being taxable in Canada. A Canadian resident reports worldwide income, and rent from a Mohali tenant goes on the Canadian return whether or not a T1135 is filed. Tax already paid in India on that rent can be claimed as a foreign tax credit, within the limits of the Canadian rules and the tax treaty between the two countries.

A sale is the same. A capital gain on selling a Mohali flat is reported in Canada in the year of sale, with credit for Indian tax. The T1135 is an information return about holdings. Dropping out of it removes a filing, not a tax.

The penalties for a late or missing T1135 also stay as they are. They run by the day up to a cap, with heavier amounts for a failure the agency treats as gross negligence, and an unfiled form keeps the reassessment period for the related income open for longer. For anyone still above the threshold, those rules apply exactly as before.

The return due next spring

The two thousand and twenty six return, filed by the end of April next year for most individuals, still uses the one hundred thousand dollar threshold and the two hundred and fifty thousand dollar simplified band. An owner with a Mohali flat and an Indian bank balance that together cost more than one hundred thousand dollars at any point this year files the T1135 as before.

The first year the higher figures would govern is two thousand and twenty seven, on the return filed in the spring of two thousand and twenty eight, provided the measure is passed in the form proposed.

Owners abroad weighing what to do with a Mohali home can find more on the [NRI property section](/nri-property-investment-mohali) and on [buying property in Mohali from Canada](/buy-property-mohali-from-canada).

Still to come

Parliament has not yet passed the budget measures, and MA has not seen draft legislation that carries the T1135 change. Until that text appears, the exact wording on the start date and on the simplified band is the government's proposal. The Canada Revenue Agency will update the form and its guide once the law is in place, and that update will settle how owners of Indian property report from the two thousand and twenty seven year.

Sources: The sources we use are listed on our Editorial Sources page.

This piece reports a Canadian budget proposal on foreign property reporting. It gives no tax or legal advice, and the filing position of any owner turns on their own holdings, residence and the law as finally passed.