4. Revenue tax slab charge → marginal tax charge
You know the way in India, earnings tax is barely levied by the central authorities and never by the state governments. So, you pay earnings tax at what’s normally known as your “slab charge,” decided by your annual earnings.
In Canada, the speed at which you’re taxed in your final greenback earned is your marginal tax charge. Each the federal authorities and the provincial/territorial governments have earnings tax charges for various tax brackets, and Canadians pay taxes to each. For instance, for those who earn $75,000 yearly in Ontario, your marginal tax charge is 29.65%, as of the 2023 tax yr. If you wish to study extra about how taxes work in Canada, right here’s a brief video by Nationwide Financial institution: “How do tax charges work?”
5. Equated month-to-month installment (EMI) → mortgage cost
In the event you took out a mortgage in India, you’ll need to know your EMI (equated month-to-month installment) quantity—the mounted quantity to pay every month throughout the time period of your mortgage. In Canada, although, your mounted mortgage reimbursement quantities, and any extra funds you make, are merely referred to as “mortgage funds.” In your mortgage contract, it’d seem as a extra particular time period, like “automobile cost,” “bank card cost” or “mortgage cost.”
6. CIBIL rating → credit score rating
In Canada, as in India, you have got a credit score rating. In India, it’s generally referred to as the “CIBIL rating,” due to the Credit score Data Bureau (India) Ltd. In each international locations, your credit score rating is a quantity between 300 and 900, representing how credit-worthy you’re, or how doubtless you’re to make your mortgage and different credit score funds on time. The upper your rating, the higher for you.
Your rating in each international locations is predicated on a number of components, together with your reimbursement historical past, your credit score utilization ratio, the size of your credit score historical past, the kinds of credit score you have got, and the variety of “laborious checks” in your credit score report from lenders. Your credit score rating helps to find out which loans it’s possible you’ll be authorised for and what rates of interest lenders might give you. Though credit score scores are essential in each international locations, in Canada, your rating is essential to your monetary well being, due to the credit-based nature of the financial system.
As a newcomer to Canada, you received’t have a credit score rating at first, as credit score scores aren’t transferable between international locations. You can begin constructing a credit score historical past by getting a bank card and paying off the stability in full each month. And, for a wholesome credit score rating, attempt to restrict your credit score use to 30% of the whole credit score obtainable.
7. S&P BSE 500 → S&P 500
When you begin incomes sufficient earnings in Canada to cowl your wants, you could have cash left every month to place in direction of longer-term monetary objectives, akin to retirement. Many Canadians spend money on the inventory market, usually via a kind of asset that offers small quantities of publicity to a number of shares, akin to exchange-traded funds (ETFs) or mutual funds. These pooled investments supply larger diversification than shopping for particular person shares.
Canadian residents and residents can entry each the Canadian and U.S. inventory markets. Subsequently, you’ll usually come throughout inventory market indices such because the S&P 500 (U.S.) or the S&P/TSX 60 (Canada). In the event you’ve invested in India, you’re most likely aware of inventory market indices just like the S&P BSE Sensex or the NSE NIFTY 50. As a fast information: the S&P 500 is just like the S&P BSE 500—it represents the five hundred largest firms by market capitalization on the inventory trade; and the S&P/TSX 60 is just like the NSE NIFTY 50 as a result of these solely observe 50 to 60 of the biggest shares by market capitalization. To seek out ETFs in your portfolio, use MoneySense’s ETF screener.
