What is efile Taxes?
The Canadian federal government is a very people friendly government, always looking to make the lives of citizens’ easier. Its latest innovation is efile Taxes, which means filing of the tax returns online. efile taxes is an automated taxation system which allows third party
preparation and filling of tax returns with the CRA, electronically. However, there are some stipulations and restrictions: only one tax return can be filed in each session and the prescribed online software has to be used for the tax calculation and filing.
But one gets immediate acknowledgement in the form of the confirmation number. For filing tax returns in bulk, one has to use the efile online plus, which will allow filing of upto 60 returns in one session. Again only the specific software can be used. But the confirmation for all filed returns is received within a few hours and the entire efile taxes
history is available from the beginning till date so any clarifications can be done at the press of a few keys.
Filing taxes online is very easy. All one needs is an internet connection to file your taxes as. When you have time from where ever you happen to be, once you have an efile number and password it is just a matter of data input and hitting ‘send’ – you are done. No queues. No mails lost and so irate clients due to delayed tax filing, etc. The tax consultant gets instant verification of his client’s data and a real time confirmation number.
Also another great advantage in efile taxes is that the tax refunds
, if any, are processed within two weeks as there is no room for errors like manual data transfer. It also does away with the cumbersome paper trail involved in tax filing earlier. All relevant data is available readily and since the special software checks for discrepancies in real time, no disputes and faster processing. Once the efile taxes are done, you will receive a pdf receipt which is acknowledged by the federal government as proof of taxes paid, as this receipt is issued by the CRA.
Individuals can also file their taxes online without resorting to a professional tax consultant. For this purpose, Netfile has to be used. It is the specified software for efile taxes for individuals. Of course, it requires the specific software that adheres to the federal government and the CRA norms and regulations. And only the T1 income tax returns
can be filed using Netfile. Other restrictions include non-eligibility in case of bankruptcy, income from a source outside your territory, or a non-resident.
Statistics show that almost 50% of the Canadian public filed their tax returns last fiscal year over the internet using the convenience of efile taxes. Some of the advantages to filing your taxes online is convenience: you can start the work once you get your T4 slip and then complete the filing at home. Also you can access your tax returns anywhere, anytime when you file online and you get your refund in 2 weeks. You can also get instant confirmation of the filed taxes from the CRA. What is efile Taxes?