We have compiled few questions which will assist you to prepare and file your tax return more effectively and efficiently.
An income tax return is a crucial document that helps the government to assess the tax liability of an individual. It includes various details such as salary income, business/professional income, capital gains, rental income, etc. The information also includes the deductions claimed by the taxpayer such as investments in tax-saving instruments, charitable donations, and other deductions allowed under the Income Tax Act. Filing an income tax return is mandatory for individuals who earn above a certain income threshold, failing which may result in penalties and fines. The income tax return also serves as proof of income for individuals who are applying for loans or visas. It is important to ensure that the details provided in the income tax return are accurate and complete to avoid any legal implications in the future.
When you file your Income Tax Return (ITR), you may wonder if you need to attach any supporting documents along with it. The good news is that in most cases, you don't need to do so. The CRA (Canada Revenue Agency) uses the information you provide in your ITR to assess your tax liability, and they don't usually require any additional documents for this purpose. However, in some cases, the CRA may ask you to submit supporting documents to verify the information you provided in your ITR. In such cases, you will have to provide the requested documents within the stipulated time frame. So, it's always a good idea to keep all your tax-related documents safe and handy, in case you need to submit them to the CRA later.
If you have not received your refund, it can be frustrating and worrisome. However, there are steps you can take to get your refund. First, check the status of your refund on the CRA website. You can do this by logging into your CRA account or by using the "My Account" feature. If you still haven't received your refund after checking the status, you can contact us and we can assist you in checking the status of your refund with the CRA. It is also important to ensure that you have provided the correct bank account information when you filed your return. If the bank account number is incorrect, your refund may have been deposited into someone else's account. If you need further assistance or have any other queries, please don't hesitate to contact us. We are here to help you.
If you have missed the deadline to file your return and you owe tax, it's important to file your return as soon as possible to avoid further penalties and interest. The Canada Revenue Agency (CRA) allows taxpayers to file their return late without penalty if they have a refund due, but this doesn't apply if you owe tax. In such cases, you will be subject to a late-filing penalty of 5% of your balance owed, plus an additional 1% for each full month that you file after the due date, up to a maximum of 12 months. Additionally, interest will also be charged on any unpaid balance owed. It's always a good idea to file your taxes on time to avoid these kinds of penalties and interest charges. However, if you do miss the deadline, the best course of action is to file your return as soon as possible and pay as much as you can to minimize any further interest and penalties.
The late-filing penalty is 5% of your 2022 balance owing, plus an additional 1% for each full month that you file after the due date, to a maximum of 12 months
Our advisors are well versed and have collectively over 40 years of experience filing tax returns in Canada.