Filing an Income Tax Return

Filing Income Tax Returns

Any individual who makes an earning beyond a certain limit is liable to pay taxes to the Government. In turn, the Canadian Government provides tonnes of facilities to those people.

The general tax is of 15% on the gross pay one gets as an income. Someone with a higher income will be liable for paying more of taxes.

The taxation year

The cycle of taxation year moves from January to December. And the income tax return has to be filed by 30th day April, every year.

Filing the return

  • Understanding the Residency Status

Someone who has stayed in the country for 6 months or more will be liable for paying taxes. He has to pay his taxes as a resident of Canada. Here, the only option one has is to find out from the Tax Department if his home country has a tax treaty signed with Canada or not. If there is not information available, then you have to pay the taxes abiding by the tax laws of the country, failing which, your residency status may be revoked.

  • Avail T4 Form

T4 form will help you to make a summary of all the income you have made in the country for a given taxation year. It will also give you a picture of earnings and deductions you may get. This form is mailed to every earning individual between the periods of January a March every year. In case you have been working with two or more employers then you should receive a T4 form from each one of them.

  • Avail Income Tax Forms

You can either retrieve the hard copy of the form or you may also download it from the website of CRA. The steps are clearly mentioned in the form along with many other relevant details.

  • Filling the Tax Form

If you are confident enough, you can always fill up the form on your own, or else, you can take help of any consultant or any Accountant who has the expertise of handling such affairs.

In case you are physically not present in the country then you have the option of filling the form even being online.

  • Despatch the Complete set of documents

After you have filled up the required form, attach all the T4 slips and any other receipts which will help you in getting deduction and post the same to the Tax Services Office.

If you overpay your taxes, you can be rest assured of getting a refund back from the Tax Department, but if you have paid less you will have to face the penalties too.