This Country Pays Rs 4,70,111 Tax-Free Per Year To Every Kid —Can You Guess Its Name

Canada is home to a large and diverse population, with a significant number of people of Indian descent. According to the 2021 census, 5.117% of Canada’s population is of Indian origin, contributing to the country’s vibrant multicultural society. For families raising children in Canada, financial support is available through the Canada Child Benefit (CCB), which helps ease the financial burden of parenting.

The Canada Child Benefit (CCB) is a tax-free monthly payment provided by the Canadian government to families with children under 18 years of age. This benefit aims to help families cover the costs of raising children and is recalculated annually based on your family’s income, making sure it stays relevant to the cost of living.

Starting July 2024, the Canada Child Benefit has been increased to help families cope with rising living costs. These updated payment amounts reflect a 4.7 per cent increase from the previous year. For example, parents of children under six will now receive Rs 39,175 ($648.91) per month, while those with children aged 6 to 17 will receive Rs 33,053 ($547.50) per month.

For the 2024 to 2025 benefit year:

- Families with children under six can receive Rs 39,175 ($648.91) per month, which totals Rs 4,70,111 ($7,787) per year. - Families with children aged six to 17 will receive Rs 33,053 ($547.50) per month, or Rs 3,96,639 ($6,570) per year. These amounts are adjusted annually, ensuring they reflect inflation and growing family expenses.

One of the greatest benefits of the Canada Child Benefit is that it is tax-free. This means that the payments you receive do not count as income, and you won’t have to pay taxes on them. It’s a significant relief for parents who rely on this benefit to manage their household expenses.

To be eligible for the Canada Child Benefit:

- You must be a resident of Canada with a child under 18 years old. - You must be the child’s primary caregiver. - Either you or your spouse/common-law partner must meet Canadian residency criteria (e.g., Canadian citizen, permanent resident, or certain temporary residents). The payment amount is based on your family’s adjusted net income from your previous year's tax return.

Here's how you can claim CCB:

- At birth: You can register for the CCB at the hospital when your child is born. - Online: Log into your Canada Revenue Agency (CRA) account and submit your application. - Paper: You can also complete a paper application and mail it to the CRA. Once approved, payments are made directly to your bank account or by cheque.