Income Tax in Canada - Individuals By: GET READY FOR YOUR FIRST TAX RETURN AND BENEFITS CLAIM article.php?id=56 |
Jhon,
If you have a credit card and are using it and paying the balance in time, it helps to improve your credit score. There are other things you can do to improve credit score, which is DO NOT take more than 2-3 cards, use them and pay immediately when the bill comes. Secondly, if you do not have cards from Canadian Tire, Sears or Hudson Bay then I would suggest take Canadian Tire & Sears Card, buy some thing, even if it is $5 or $10 and pay the bill in time and this will improve your score dramatically. You can call me and I shall let you know other things to improve the score. In my series of articles on Mortgages, I would write on Credit (DOs & DONTs) sometime next week and you can take some hints from there.
You are right that Self Employed people generally do not get the best rate but in your condition, as you have suggested in your post that you are going to put down the down payment you mentioned, we can put you in certain programms and have you pre-qualified and get you the mortgage at the 'best rate'. You can simply contact us when ready. In fact if you are planning to buy a house within the next 5-6 months, it is the best time to lock the rate as most lenders offer you a 90-120 days rate guarantee.
Thirdly, you can get your 'free credit report' (YOU ARE ENTITLED TO A FREE CREDIT REPORT) which will tell you the credit you have and if there is any mistake you can get the same rectified in advance so that it should not create problem at the time of getting ready to buy the house. In fact we suggest every one to get their 'free credit report' once every year and check it thoroughly and if they feel that there is any mistake, it should be brought to the attention of the credit bureau immediately and steps should be taken to rectify the error. This also helps in keeping a check on 'identity fraud' which is very prevalent now a days and causes unnecessary problem and frustration to the victim. To learn more about it and te get your 'free credit report' you can visit http://www.equifax.ca." rel="nofollow">LINK However, please note that the 'free credit report' does not give you your 'credit score' as the bureau charges a fee for the same. But, your 'free report' would tell you whether or not your credit is good. We can give you free advice after seeing your report also.
Good Luck
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Your real questions are
1. to reduce penalty if not eliminate
2 to pay minimum tax
3. to help in getting house mortgage
4. to save money
For all of this, I will say you can reduce your tax without losing income level and tax penalty. It maynot be easy to put all that information here, so call me at 416 399 1009.
The article about tax for individuals (2nd article will be posted day after tomorrow), you may refer to that also.
Your questions are well covered thereunder.
In case you have any more questions, do let me know
As per Mr.Gupta residency status in Canada is only if one stays here(Canada) for 183 days inone Calander year But I think as per new rules it is 2years stay in every 5 years .
Please clarify.
Also please clarify that one have stay in Canada for 2 years first then he can go back for 3 years or at any point of time one can go back for 3 years and come back after 3 years to maintain his/her residency status?
please clarify
Thanx
Hey Raj,
Sanjiv is talking about residence per income tax rules - it is different from PR as per immigration rules. One can be a PR withut being a resident, and similarly, one can be resident (per ITax) without being a PR (foreigner only on a work visa).
Hope that clarifies.
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Chandresh
Advice is free – lessons I charge for!!
Most important to note:- Please ensure to include the law one is interested to know when submitting a question.
My assumption is that we are talking about Income Tax and not Citizenship law under this thread.
Under income tax, it is still 183 days for being held as resident of canada.
However for Citizenship, I can not comment as I am not expert in that.
I hope this will clear your doubts
I read your information in canadiandesi.com and should really thank you for the useful information.
I have a query and would be greatful if you could help me.
Currently i work in the united states. I landed in canada as an immigrant durin nov 2003 and i lived there only for 4 days and came back to the usa. Do you think i have to file a tax return in canada.
Can u please help me.
As Sanjiv has pointed out again and again........technically you have to file returns once you became a PR. There are both penalties as well as loss of benefits if you do not file. You can weigh your advantages and disadvantages and then decide.
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Chandresh
Advice is free – lessons I charge for!!
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