Quick summary

An EIN is a 9-digit tax ID the U.S. IRS gives to businesses and other entities. Indians need an EIN when they form or operate a U.S. entity, hire U.S. employees, or have U.S. tax-reporting obligations (for example to file Form 1042/1042-S, payroll returns, or corporate tax returns). IRS

Do you actually need an EIN?

Common reasons Indians need an EIN:

• You incorporated a U.S. company (LLC, C-corp, S-corp) and will file U.S. taxes.
• You will hire U.S. employees or run payroll in the U.S.
• You will pay U.S.-source income to foreign persons and must withhold or report (Form 1042/1042-S).
• A U.S. bank asks for an EIN to open a business account.
  If none of the above apply, you probably don’t need an EIN — check first with your US adviser or bank. IRS

Which form / route is used

• Form SS-4 is the official application for an EIN. You’ll fill basic entity info, the “responsible party” details, purpose of the EIN, and contact details. IRS

How Indians (outside the U.S.) can apply — step by step

Step 1 — Prepare Form SS-4 details

Have this ready before you call or send the form:

• Legal name of entity, trade name (if any) and mailing address.
• Entity type (LLC, corporation, partnership, trust, etc.).
• Date business started / date of incorporation.
• Name and details of the responsible party (the person who controls the entity). The IRS requires a real person — nominees are not recommended. IRS+1

Step 2 — Choose your application method (pick one)

A. By phone (fastest for international applicants)

• If your principal place of business is outside the U.S., international applicants can call the IRS EIN number: +1-267-941-1099 (not toll free). This line operates Monday–Friday (check latest IRS hours). The IRS can assign the EIN over the phone during that call. Keep Form SS-4 filled so you can answer questions. IRS+1

B. By fax (fast, common option)

• Fax your completed Form SS-4 to the IRS international fax number (check the live IRS page for the correct fax for outside-U.S. filing). If you include a return fax number, the IRS will generally fax the EIN back in about 4 business days (timings may vary). IRS+1

C. By mail (slowest)

• Mail the signed Form SS-4 to the IRS EIN International Operation address. Expect about 4–6 weeks turnaround — allow extra time during busy seasons. IRS+1

Important: The IRS online EIN application is generally not available to applicants whose principal place of business is outside the U.S., or if the responsible party does not have a U.S. SSN/ITIN. International applicants should use phone, fax, or mail. IRS+1

Step 3 — Responsible party & ID notes

• The SS-4 asks for the responsible party’s name and taxpayer ID (SSN/ITIN). If the responsible party lacks an SSN/ITIN, you still may apply — leave SSN/ITIN blank and explain on the fax or phone call. The IRS accepts these cases for foreign applicants; you do not have to get an ITIN first to get an EIN. IRS+1

Step 4 — Third-party designee (optional)

• If you want a U.S. lawyer, accountant or agent to receive the EIN on your behalf, complete the “Third-Party Designee” section on Form SS-4 and provide the designee’s contact details. The designee can receive the EIN directly. IRS

Step 5 — After you get the EIN

• Save the acknowledgement/fax confirmation or write down the EIN if granted by phone. Keep a copy of the filled SS-4. Use the EIN when opening U.S. bank accounts, filing payroll, or submitting U.S. tax returns. If contact details or responsible party change later, update IRS using Form 8822-B. IRS

Timelines — what to expect

• Phone: immediate (EIN issued during the call). Ebizfiling
• Fax: typically about 4 business days if a return fax number is provided; can take longer. IRS+1
• Mail: roughly 4–6 weeks (allow more time during peak periods). IRS+1

Fees & official cautions

• There is no fee charged by the IRS to apply for an EIN. Beware of third-party websites that charge you to submit the form. Use IRS pages or trusted advisers. IRS

Practical tips (Saving Mantra advice)

• If you need the EIN quickly, call the IRS international number early in their day — lines can be busy. Have Form SS-4 filled and scanned (if faxing later). Manay CPA
• Don’t invent a “responsible party” — IRS expects a real person who can be contacted and whose identity is verifiable. Nominee entries can cause problems. IRS
• If a U.S. bank insists on an EIN before account opening, get the EIN first and then use it to open the account; for banks that require an SSN/ITIN for signatories, discuss options with the bank (some banks accept non-U.S. signatories with alternative docs).
• Always keep a signed copy of the SS-4 and the EIN acknowledgement for your records — you’ll need them for U.S. tax returns and bank/KYC. IRS

Short checklist (ready)

• Decide you need an EIN (incorporation, payroll, withholding, bank).
• Fill Form SS-4 with accurate entity & responsible-party details. IRS
• Choose method: phone (+1-267-941-1099), fax, or mail. IRS+1
• Have ID & contact info of responsible party ready.
• Save EIN confirmation and Form SS-4 copy; update IRS later with Form 8822-B if needed. IRS

Short FAQ (common quick answers)

Q: Can I apply online from India?
A: No — the IRS online EIN tool is normally only available to applicants with a U.S. principal place of business and the responsible party’s SSN or ITIN. International applicants must use phone/fax/mail. IRS+1

Q: Do I need an ITIN before applying?
A: No. You do not have to get an ITIN first; the IRS assigns EINs to foreign applicants by phone/fax/mail without an ITIN. IRS+1

Q: How long before I can use the EIN?
A: If issued by phone or fax, you can use it immediately. If by mail, wait for the letter — but you can indicate “Applied For” on forms if a tax return is due. IRS+1

Where to read official IRS guidance

Primary IRS pages to bookmark and follow:

• IRS — Employer Identification Number (main EIN page). IRS
• IRS — About Form SS-4 (instructions & PDF). IRS+1

Disclaimer

This guide is for general informational purposes only. Rules, phone numbers, fax numbers, and processing times can change. Always verify the latest procedures on the official IRS website (irs.gov) before applying. For complex cases (cross-border tax issues, treaty questions, payroll withholding, or banking KYC), consult a qualified U.S. tax advisor, CPA, or immigration attorney. Saving Mantra is not responsible for actions taken on the basis of this guide.

Introduction

Many Indian employees working in Canada—whether on a work permit, PR, or as remote workers for Canadian companies—must file an annual Canadian Tax Return. Filing ensures proper tax compliance, refund claims, benefit eligibility, and avoids penalties from the Canada Revenue Agency (CRA). This guide explains each step clearly for Indian professionals living or earning income in Canada.

Who Must File a Canadian Tax Return?

You must file if you:

• Earned income in Canada (salary, contract income, business, investments)
• Stayed in Canada for more than 183 days (resident for tax purposes)
• Paid excess tax and want a refund
• Received a notice from CRA
• Want GST/HST credit or Canada Child Benefit (if eligible)

Indian employees working remotely for a Canadian employer may also have tax obligations depending on residency status.

Step-by-Step Process for Filing Canada Tax Return

Step 1: Determine Your Residency Status

CRA classifies individuals as:

• Resident (most Indian workers on closed/open work permits fall here)
• Non-Resident
• Deemed Resident
• Part-Year Resident

Residency defines your tax rate, income to report, and deductions you can claim.

Step 2: Gather All Required Documents

Collect the following before filing:

• T4 Slip (employment income)
• T5, T3 (investment income)
• T2200 (employment expenses, if applicable)
• Rent receipts (province-specific credit)
• RRSP contributions
• Tuition fee receipts
• Passport & visa details
• SIN (Social Insurance Number)
• Bank statements

Indian employees returning to India must ensure they carry all tax slips received from their Canadian employer.

Step 3: Create a CRA MyAccount

Visit: https://www.canada.ca/en/revenue-agency/
You need:

• SIN
• Canadian phone number or email
• Identification proof

This account helps track tax slips, refund status, assessments, and credits.

Step 4: Choose a Filing Method

You can file using:

• NETFILE certified tax software (most common)
• Paper return
• Tax consultant
• Saving Mantra Canada Tax Filing Support

Most Indian employees prefer online NETFILE for faster refunds.

Step 5: Prepare the Return

Enter the following in your tax software:

• Employment income (T4)
• Deductions
• RRSP contributions
• Canada Pension Plan (CPP)
• Employment Insurance (EI)
• Provincial credits
• Taxable benefits
• Foreign income (if applicable)

Verify all amounts with official CRA slips.

Step 6: Claim Deductions & Credits

Common claims for Indian employees:

• RRSP contributions
• Moving expenses (if employment-related)
• Childcare expenses
• Union dues
• Tuition credits
• Medical expenses
• Home office expense (for remote workers)
• First-Time Home Buyer Incentive (if applicable)

Deductions reduce taxable income and increase refund eligibility.

Step 7: Submit the Tax Return

Using NETFILE:

• Submit directly from your tax software
• Get immediate confirmation
• Track status on CRA MyAccount

Typical refund time: 8–14 days.

Step 8: Review Notice of Assessment (NOA)

CRA sends a Notice of Assessment, which:

• Confirms final tax result
• Shows refund/amount owed
• Lists any issues or adjustments
• Updates your RRSP contribution limit

Keep this document safely for future filings.

Step 9: Pay Any Outstanding Taxes

If you owe taxes:

• Pay through online banking
• CRA MyAccount
• Approved payment partners

Delay may trigger interest or penalties.

Step 10: Maintain Records

Keep all tax receipts, slips, and filings for 6 years as required by CRA.

Special Notes for Indian Employees

1. If you returned to India after working in Canada

You must still file Canadian taxes for the period you worked in Canada.

2. Indian Residents with Canadian Income

If you earn rental income, salary, or investment income from Canada while living in India, you may need to file:

• Canadian tax return
• Indian tax return
• Apply Double Taxation Avoidance Agreement (DTAA) relief

3. Remote Workers Employed by Canadian Companies

Tax liability depends on:

• Whether employer has a permanent establishment in India
• Residency duration
• Treaty benefits

Saving Mantra can assess your individual tax position.

Saving Mantra Support

Saving Mantra provides end-to-end support for Indian employees working in Canada:

• Canadian tax return filing
• Provincial tax advice (Ontario, BC, Alberta, etc.)
• DTAA relief calculation
• Residency status determination
• RRSP optimisation
• Tax planning for return to India
• Canada–India dual tax compliance

Disclaimer

This blog provides general information about filing Canadian tax returns for Indian employees. Tax laws in Canada vary by province and may change based on CRA notifications, residency rules, and individual circumstances. This content is not legal, tax, or financial advice. For personalized tax planning, consult a licensed Canadian tax professional or seek Saving Mantra’s expert support.

Quick summary

H-1/L-1 employees must decide whether they’re U.S. tax residents or nonresidents, then file the correct federal return (Form 1040 for residents or 1040-NR for nonresidents) and any required state return — with FBAR/FATCA and other reporting as applicable. IRS+1

TL;DR checklist

• Determine tax residency (Substantial Presence Test). IRS
• Resident → file Form 1040; Nonresident → Form 1040-NR. IRS+1
• Federal due date (usual): April 15 (see IRS “When to file”). File Form 4868 to get a 6-month extension to file (but not to pay taxes). IRS+1
• Report foreign accounts if aggregate > $10,000 at any time → FBAR (FinCEN Form 114). FinCEN.gov
• If you (or spouse) don’t have SSN, apply for ITIN (Form W-7). IRS

Step-by-step process (simple language)

Step 1 — Work out whether you’re a U.S. tax resident

Use the IRS Substantial Presence Test: you’re a resident for tax purposes if you were physically present at least 31 days in the current year and 183 days total using the 3-year formula (all days this year + 1/3 of last year + 1/6 of the year before). If you meet it, you generally file as a resident and report worldwide income. If not, you’re a nonresident and generally report U.S.-source income only. IRS+1

Step 2 — Gather your income documents

Collect:

• W-2(s) from employer(s) (shows wages and taxes withheld).
• Any 1099s for contract work, interest, dividends, or other income.
• Form 1042-S if you received certain treaty-exempt or other payments.
• Records of foreign income, foreign taxes paid, bank statements (for FBAR/8938), and proof of tax withheld.

Step 3 — Choose the right federal form & understand what to report

• If resident: file Form 1040 — report worldwide income, claim credits/deductions (e.g., foreign tax credit on Form 1116 if you paid tax abroad). IRS
• If nonresident: file Form 1040-NR — report only U.S.-source income and treaty items as applicable. IRS

(If you’re unsure: the Substantial Presence Test page gives examples and the IRS also explains tax treatment of H-1B aliens.) IRS+1

Step 4 — Check whether the U.S.–India tax treaty helps you

The U.S.–India tax treaty can affect how certain types of income are taxed (and may provide relief from double taxation for some items). Treaty provisions are technical—if you think a treaty article applies (for example, for certain pensions, teachers, or temporary visits), consult the treaty text or a tax advisor. IRS

Step 5 — Watch reporting rules for foreign assets & bank accounts

• FBAR (FinCEN Form 114): U.S. persons (which includes resident aliens) must file if the aggregate value of foreign financial accounts exceeds $10,000 at any time during the calendar year. This is filed electronically with FinCEN (separate from the IRS return). FinCEN.gov
• FATCA (Form 8938): separate IRS reporting for specified foreign financial assets if higher thresholds apply (depends on filing status and whether you live in the U.S. or abroad). (See IRS guidance — thresholds vary.) IRS

Step 6 — State tax return & payroll taxes

Most states require income tax returns if you earned income there — check the state revenue department for rules and deadlines. Note: Social Security and Medicare are payroll taxes generally withheld by employers and are not reported on Form 1040 the same way income tax is (but they affect take-home pay). Totalization (social security) agreements can change coverage — India and the U.S. have been in discussions, but check current SSA/IRS guidance for status. IRS+2Social Security+2

Step 7 — Deadlines & extensions

• Federal filing due date: normally April 15 (use the IRS “When to file” page for this year’s exact calendar). If you need more time to file, submit Form 4868 for an automatic 6-month extension to file (not to pay). Pay any expected tax by the April due date to avoid interest and penalties. IRS+1

Step 8 — If you or your spouse don’t have an SSN

Apply for an ITIN (Form W-7) when required (for spouses or dependents not eligible for an SSN). Instructions and supporting documents are on the IRS W-7 page. You can often submit the W-7 with the tax return to the IRS through the correct channels. IRS

Step 9 — File, pay any tax due, and keep proof

File electronically where possible (faster refunds and fewer errors). Pay by bank transfer, debit, credit, or EFTPS. Keep PDF copies of filed returns, payment confirmations, W-2s, 1099s and bank records for at least 3–7 years (longer if issues or audits). Use the IRS “Where’s My Refund?” tool to track refunds. Kiplinger+1

Common mistakes to avoid

• Filing the wrong form (1040 vs 1040-NR) after mis-calculating residency. IRS+1
• Missing FBAR when foreign accounts exceed $10,000 (serious penalties). FinCEN.gov
• Not paying estimated taxes if you have large untaxed income (e.g., freelance/1099).
• Using wrong treaty positions without documentation — treaty claims often require Form 8833 or other support. IRS

Practical Saving Mantra tips (for Indian H-1/L-1 employees)

• Start early: request W-2s/1099s from employers and gather bank records in Jan–Feb. IRS
• If you worked part-year in the U.S., run the Substantial Presence Test carefully (days count exactly). IRS
• Keep clear digital copies of all documents — you may need them for FBAR/FATCA. FinCEN.gov
• If you paid tax in India on the same income (rare for US wages), the foreign tax credit (Form 1116) or treaty relief may prevent double taxation — get professional help. IRS
• Use professional e-file software or a tax advisor experienced with nonresident/resident alien rules — small errors can cause large penalties or lost treaty benefits.

Short checklist (ready to use)

• Decide residency (Substantial Presence Test). IRS
• Collect W-2, 1099, pay stubs, bank statements.
• File Form 1040 (resident) or Form 1040-NR (nonresident). IRS+1
• File FBAR (FinCEN Form 114) if foreign accounts > $10k. FinCEN.gov
• File Form 4868 if you need more time to file (pay taxes due by April). IRS
• Apply for ITIN (Form W-7) if spouse/dependents need one. IRS

Where to read official guidance (quick links)

• IRS Substantial Presence Test & residency rules. IRS
• IRS: Taxation of H-1B / aliens by immigration status (resident vs nonresident). IRS
• IRS: Form 1040-NR guidance for nonresident aliens. IRS
• IRS: When to file (deadlines) & Form 4868 for extensions. IRS+1
• FinCEN: FBAR reporting rules (Form 114). FinCEN.gov
• U.S.–India tax treaty text (for treaty claims). IRS

Disclaimer

This guide provides general information only and is not tax or legal advice. U.S. tax rules (residency tests, filing forms, reporting thresholds, treaty interpretations, and deadlines) change frequently and can be complex for international employees. For personalized advice—especially about residency status, treaty claims, FBAR/FATCA rules, and state returns—consult a qualified U.S. tax professional or CPA. Saving Mantra is not responsible for actions taken based on this guide.