Have you been checking your statement of account and you see Canada RIT or RIF as one of the sources of the credit in your bank and you are wondering what that may be? Don’t be panic, it is from CRA.
This article will discuss extensively on this and help you with all the information that you may wish to know about the Canada RIT or RIF without mincing words. You will also be exposed to, how you can be eligible for this fund.
Canada RIT: What are you supposed to know.
Canada RIT is the abbreviated form of Return or Refund Income Tax. Don’t be surprised if you see it as Return Income Fund (RIF). The two are the same. It is commonly written as RIF/RIT.
What’s Canada RIT all about? It is the money that Canadian government refund to their citizens. Is that all? No. It is more than that. Government doesn’t just send money to their citizens for no reason. Then, why and when can government refund money to citizens?
Canada RIT is the money you get from government after you must have filing your income tax. And Canadian government, through its agent, Canada Revenue Agency ( CRA) finds you qualified for this refund.
This may also happen when government is owning you a tax and you have linked your account with the CRA. This will show up as RIF.
What Does Canada RIT mean on my Bank Statement.
The feeling that we always see whenever we see money that we are not expecting is always superb. That’s how many feel whenever they see Canada RIT or RIF in their accounts while checking their bank statement.
You don’t need to be surprised seeing this. It is probably coming from the CRA ( Canada Revenue Agency)
It is the money that is sent to you as your Tax Return, if you have filed your Income Tax and the government assumed the tax is too much to bear.
This money is not taxable. This means, government is not seeing this as your gross income and you don’t need to be worried if government will deduct from it. You are the owner of your money and you are free to do whatever you like with it.
But there are some cases when the money in our account, even though, it has its source to be Canada RIT, is not from Canada Revenue Agency. Succinctly, the money may be mistakingly sent to our accounts.
What should we do in case we see unexpected Canada RIT in our account. We need to immediately log in to your account , that is, My CRA account. You can lodge your complaint about the money that you see in your account for them to take the necessary steps.
Who is eligible for Canada RIT?
Many people have been how to the eligibility of the Canada RIT. Every Canadian citizen can apply for this scheme. You only need to file your income tax during the Income Tax season which is always around February and April.
Corporation as well can get access to this money if they have overpaid income tax. Then CRA will work on it to know whether you deserve the refund or not. The money is being given usually as a result of overpayment of tax, savvy deduction and other reasons.
Remember, Canada RIT is not a bonus from government, rather it is a return on excess tax that citizens must have paid or return on excess deduction that citizens have fallen a victim of. Definitely, it is likely some citizens do not get it after filing their income tax.
Canada RIF/RIT Deposit: What does it mean?
You don’t need to be worried if you bank statement reads either Canada RIT or RIF. It is the excess money that you have been charged and the government wants to return or refund you with the money. It is your money.
However, before you can have access to this money, government must have had access to your Personal Income Tax, which you must submit at most April 30th. It always starts from February. This will give the CRA ample time to scrutinize your account.
How much you should be expecting from as your Canada RIT will depend on your financial circumstances, income tax that you must have paid, and the tax deduction that you are qualified for among other yardsticks they do consider.
Canada RIT Deposit Less than Expected.
This may happen. Sometimes citizens may get lesser or more than what they are expecting. If it is lesser, it may mean that the citizens have more taxes to pay on its returns. This means citizens do not enjoy deduction or credit on some of his tax return.
If it is more than expected, it is likely the citizens more than the necessary tax that he’s supposed to pay. But if this information doesn’t satisfy you, you may contact CRA for more information on it.
Also Read: How to Apply and get Approved for EI
Canada RIT is designed by the Canada government under the responsibility of the Canada Revenue Agency, to return some excess charges from citizens, back to them. This can only be done if the citizens have submitted their Personal Income Tax which will enable the agent to verify the qualifications of the citizens.
The article has tried to simplify the criteria that are needed and required to be eligible for the Canada RIT or RIF. In case, there is more aspects that we don’t cover, you can kindly use the comment box to get your opinion heard.
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