Tax Saving Plan for Employed People

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Employed people have less scope for tax savings compared to those who work alone. If you are currently employed, the income and benefits from and related to your employment are taxed and you cannot claim any deductions against employment income except that are specifically allowed by the system. If you are also into a business then you can get some tax-saving techniques here

Here are some techniques that can cause the tax to save tax planning:

• Arrange to get non-taxable benefits:

There are some employee benefits that are not taxable like contributions to a registered pension plan, contributions to a group sickness or accident insurance plan, contributions to a private health services plan, all or portion of the cost of free or subsidized school services for your children.

• Ask to have your source withholdings reduced wherever possible:

 In any situation where you expect to receive a refund after filing your return, you should review the forms you file with your employer and try to have a source with reduced ownership. If you get a refund, which means the CRA has held your money and do not pay you interest on it for months. The better you can send a check to the CRA at the time of filing so you can use the funds in the meantime.

• Consider the employee profit-sharing plan for the purposes of the cash flow:

no source deductions on the amount paid by the plan for you. time care from employer contributions and expenditure plans may provide cash flow better than going straight bonus payments.

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