What is an Individual Tax?
Tax is an amount of money paid by a person to the government. The government may levy tax upon people for various purposes and only based on this tax amount a government is able to perform its various functions. The taxes are the backbone of a country's economy, and all it individuals and entities are to pay the tax amount. Evasion or no n payment of taxes is a federal crime in Canada. The Tax payment regulations are controlled by the Canada Revenue Agency
. In Canada there is something known as the individual tax. This is the tax that is levied upon the individual and he has to pay the amount to the government. The individual tax is subdivided into various categories.
Types of Individual taxes:
The various types of individual taxes are the Income tax, Inheritance
tax, Property tax and Poll tax. In some Counties there is also a retirement tax. We will see each of these taxes that are levied upon the individual.
* Income Tax:
It is one of the most ancient forms of taxation. This type of individual tax levies tax upon the income of thee individual. The rate of income tax varies with the countries. The income tax is a part of the income of the individual that has to be paid to the government. The income tax provides the government with most of its treasury money. The income tax is also levied upon the organizations on their profit level. Most of the tax evasions are done in the income tax and this is a federal crime in Canada. Severe actions can be taken against the offenders of the federal rule to pay the tax.
* Property Tax:
This type of tax is the one that is levied upon the individuals based upon their property holdings. The property tax is calculated based upon the ground value of the property and assets of the individual. Then this amount is levied upon them to be paid in due course. This type of tax is levied in a different form. It is by buying of stamp papers or bonds from the government for registration of a property by the individual.
* Inheritance tax:
The inheritance tax is the tax amount that is levied upon the individual based upon the inheritance that a person incurs. The inheritance tax also includes the property tax as the ownership of the property changes. The inheritance tax is not so common tax and only contributes to a small percentage of the government's treasury.
Tax returns and conclusion:
Tax returns are the filing or informing the government about a person's income or property or inheritance in a voluntary manner. The individual tax is then levied based upon this filing of returns. There are various methods of filing a person's tax returns. Doing them manually is a tedious process and there are softwares available in the market to generate the tax returns in the required format automatically. In Canada the Individual Tax return should be filed within April 30 of the year. Defaulting this would lead to complications. Hence it is advisable to file the individual tax return promptly.