What is a Income Tax Return?

The world has evolved a long way from the way the ancient men lived. The modern day man has evolved as a much more distant relative of the ancient man. But since the day the world became civil and civilizations began to grow upon the banks of rivers, man has been following certain rules. All of these civilizations have had a unique and professional system of administration.

As the records say, almost every civilization collected something called as taxes. Man till today has carried forward this system. Modern day man levies taxes for a variety of reasons. Each of these reasons is for administrative ease. In Canada it is expected that all persons having a taxable income pay their taxes.

Income Tax: As said before there are several kinds of taxes and each of these taxes are levied by the government of Canada for a variety of reasons. One of the standard taxes is the income tax. Every person or organization which has an income is expected to pay their income taxes. In Canada, violating the terms of payment or even absenting yourself from paying the income taxes might invite harsh penalties from the Canadian Government.

Not all persons have to pay the income tax. And not all persons need to pay the same amount of tax. The department of income tax of the Government of Canada has made provisions for certain persons exempting them from paying their taxes. And for those who have to pay the taxes, there are tax tables which specify for what amount of income how much of tax will be required to be filed.

Income Tax Return: The income tax return forms an integral part of your income tax. Filing your income tax return is as important as filing your taxes itself. The reason you need to file your returns is simple. It is an easy way of estimating your credit worthiness. It might help you secure a loan or two from banks and even form certain other financial institutions. It is nothing but a form which contains certain number of particulars. The form is an inquiry about your personal data and financial data. It asks about the amount of taxes which you have paid on your income. There are various forms and applications available for different categories of incomes and methods of incomes.

Most countries and particularly Canada do not tolerate tax violations. Even absenting yourself from filing of your income tax returns will attract certain stringent measures form the income tax personal. For those who have filed their income tax returns, the government offers certain deductions which might in turn be a blessing for most of the people.

Filing of the taxes is a constitutional duty of every individual who earns a taxable income. Likewise, filing of the income tax returns is also mandatory for every person. The taxes paid in every way help for the development of the country and hence it is required that every person pays their taxes and files their income tax returns.

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