Monday, 25 April 2016

How to Pay the Outstanding Taxes to Canada Revenue Agency for Individual Taxes

When you prepare your individual tax return, you may have either tax payable or a tax refund. The last date for payment of individual taxes without interest charges is April 30, 2016. After April 30th, CRA will charge interest at the rate declared by it for the Quarter April-June 30, 2016. Currently, CRA charges interest at the rate of 5% per annum on overdue taxes.
In order to avoid paying interest charges to CRA, it is important to pay taxes by April 30, 2016.
There are the following options with regard to the manner of payment of taxes.
1)      Pay Online to CRA:
Visit CRA website: www.cra.gc.ca
On the Home Page, click the tab of “My Payment” under Online Services
Check whether you have the bank account/do online banking with the specified financial institution
Click the tab of “My Payment”
Choose Tab of “Individuals”
Choose the link of “Individual Income Tax”
Choose “2015-Tax return”
Choose online screen instructions and complete the payment
You can use the following link directly to avoid the above steps.
2)      Pay by filling out the Payment Form TD7R (A):
This is fairly simple in the sense that you can complete the payment form received from CRA and take it to your bank and complete the payment. The Bank will issue you a stamped payment receipt.
3)      Mail a Cheque to CRA with a letter:
You can write the cheque in favour of Canada Revenue Agency and make sure that you write your social insurance number and the words “Payment of taxes for 2015” in the memo section of the cheque. Attach your covering letter with it.
Canada Revenue Agency does not accept the cash payment of taxes at any of its offices.

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