treaty resident or citizen (pension 0% vs 15%)

[ND]

Can a taxpayer use 0% (Art XX pensions https://www.irs.gov/pub/irs-trty/india.pdf) of India-USA treaty for an Indian citizen who lives and works full time here in Canada under permanent resident status (immigration), versus 15% rate on periodic (XVIII CAN-USA treaty)? Since it’s an inheritance and won’t be taxed by Canada (or India), it’s worthwhile for taxpayer to file over-w/h US refund-claim 1040NR vs the strategy of not doing so employed by taxpayers claiming 15% FTC on T1 using only 1042-S.

Can such person claim India treaty benefit (and not violate LOB)? My underlying question is do treaties look only at residence or also citizenship?

[nelsona]

The pension article in that treaty refers to "residents" on the contracting states, not citizens. So, the taxation of a US pension will be based on where the person lives according to US, Canada and Indian competent authorities.