deductions from income


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indian girl   
Member since: Dec 03
Posts: 12
Location: philippines

Post ID: #PID Posted on: 12-01-04 09:16:31

Hi! Actually, i am not sure to whom i should address this question. To the expert:

Kindly enlighten me about the deductions from income (taxes, health contributions etc.) for an accountant working in mississauga. Approximately how many percentage is deducted from the salary? I need this information badly.

Your response will be greatly appreciated. :)



Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON

Post ID: #PID Posted on: 15-01-04 19:36:24

Quote:
Orginally posted by indian girl

Hi! Actually, i am not sure to whom i should address this question. To the expert:

Kindly enlighten me about the deductions from income (taxes, health contributions etc.) for an accountant working in mississauga. Approximately how many percentage is deducted from the salary? I need this information badly.

Your response will be greatly appreciated. :)




I waited for a 'Tax Professional' to answer this post but as no one came forward, I am giving you a rough idea.

In Canada, the income tax has various slabs. You have to pay 'Federal Tax' as well as 'Provincial Tax' on your income. The 'Federal Tax is same every where but the 'Provincial Tax' is different in each province. For simplicity sake we would talk about 'Ontario Province' only as you have talked about an accountant in Mississauga City, which is in Ontario.

Federal Slab are as follows :

Income up to $32,183 16%

more than $32,183 but up to $64,368 the tax is $5149+22% of the amount over $32,183

Income more than $ 64,368 but up to $104,648 the tax is $12,230 + 26% of the amount over $ 64,368

Similary the provincial tax slabs are as under :

Income up to $32,435 6.05%

more than $32,435 but up to $64,871 the tax is $1962 + 9.15% over $32,435

more than 64,871 the tax is $ 4930 + 11.16% of the amount more than 64,871

However, you get a personal deduction from both level of governments
upto $7756 and $7817 respectively. What it means is they will deduct this amount from your gross income and then apply taxes.

In addition to this you have to pay E.I (employment insurance) of around 2% (maximum of $800 app.) and C.P.P (Canada pension plan) of app. 5% (maximum of $1800 app.) and if you have a health plan with your employer, then an additional 2 to 3% of the pay you would have to pay.

So, if for argument sake if a person has a gross income of 50,000 then after the personal deduction of app. $7,800 he will have to pay tax of $5149 + $1962 + $3115 ( being 31.15% of app. $10,000 ($50,000 - $7,800 - $32,200) which is the 2nd slab) a total of around $10,226 plus another $4000 in EI, CPP and health plan.

However, you should visit the site http://www.ccra-adrc.gc.ca/tax/individuals to get the latest information.

I hope it helps.


-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



indian girl   
Member since: Dec 03
Posts: 12
Location: philippines

Post ID: #PID Posted on: 15-01-04 23:55:15

Hi Sir Pramod :)

I dont think words would be enough to thank you for the very profound reply. you certainly explained everything so well. it must have took you some time to draft that reply, thanks a ton!

Now at least i have an idea how much of my salary will go to taxes and other deductions. For a new immigrant like me, it is of utmost importance that i maintain a reasonable budget. your reply really helped me in a great way.

again, my deepest gratitude to you. hope you help more ignorant souls like me......

Yours truly,
Indian girl



Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON

Post ID: #PID Posted on: 16-01-04 01:04:37

You are welcome...

This forum has been designed for helping Desi's, specially new & prospective immigrants by giving them first hand information about the Canadian lifestyles, cost of living, job situations, housing, taxation & immigration (just to name a few) and various other matters of importance. I am glad that I could give you a little idea about the taxation system here. You can ask any other question as well, and I am sure the fellow Desi here would be quick to reply and guide you.

Good Luck


-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



Indian   
Member since: Nov 03
Posts: 147
Location: Vancouver

Post ID: #PID Posted on: 06-02-07 07:54:33

Dear Mr. Chopra

Could you please inform the current rate of personal deduction applicable under Federal and Provincial (BC) tax system for the year 2006.

When will the Government declare income tax (federal and Provincial) rates for the year 2007?

I shall be grateful for this information as I have to plan the year ahead.

Warm regards


-----------------------------------------------------------------
There is no pleasure in having nothing to do; The fun is in having lots to do and not doing it.


Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON

Post ID: #PID Posted on: 06-02-07 14:59:43

Quote:
Originally posted by Indian

Dear Mr. Chopra

Could you please inform the current rate of personal deduction applicable under Federal and Provincial (BC) tax system for the year 2006.

When will the Government declare income tax (federal and Provincial) rates for the year 2007?

I shall be grateful for this information as I have to plan the year ahead.

Warm regards





Hi Indian,

Please follow these links and you will get all the information you are looking for.

http://www.cra-arc.gc.ca/formspubs/t1general/british-columbia-e.html


http://www.cra-arc.gc.ca/E/pbg/tf/5010-c/5010-c-06e.pdf

http://www.cra-arc.gc.ca/E/pbg/tf/5000-s1/5000-s1-06e.pdf

http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-06e.pdf






-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



Indian   
Member since: Nov 03
Posts: 147
Location: Vancouver

Post ID: #PID Posted on: 15-02-07 04:01:48

Dear Mr. Chopra

Thank you very much.

I really appreciate your efforts.

Thanks again.


-----------------------------------------------------------------
There is no pleasure in having nothing to do; The fun is in having lots to do and not doing it.


Contributors: Pramod Chopra(5) indian girl(2) Indian(2) VJ(2) investpro(1) Bingo(1)



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