In layman terms, Leave Encashment means to avail salary in lieu of accumulated leaves. In any organization, Leave Encashment is one of the major incentives for employees not to avail leaves :). I was one such employee who believed in the accumulation of leaves. In all my previous organizations, i accumulated at least 80% to 90% of the total leave eligibility. Normally the Leave Encashment policy of the organization allows you to encash the leave at basic salary. If your salary structure is tax friendly i.e. fully loaded with perquisites and allowances. In such cases, basic salary is less than ... Read More
Financial Investments – 11 Most Important Points to Consider
"Financial Investments are not a child's play" i read it in a book of a very famous investment guru. The term "investment guru" is loosely used in the personal finance space. We have investment gurus of the stock market, real estate, mutual funds, commodities etc. In past as a common investor, i used to get confused whom to follow and who should be ignored. I could not find reliable 360-degree information on financial investments. In India, all the people around us are also investment gurus. Normally an investor decides on Financial Investments based on the feedback from their relatives, ... Read More
Capital Gain Tax – Long Term Capital Gain
In my previous post on Capital Gain Tax - Short Term Capital Gain we discussed capital gain tax in detail. We also discussed how short term capital gain tax is calculated. Before going through this post, I would request you to go through my previous post. This post is continuation of previous post Capital Gain Tax - Short Term Capital Gain. In this post we will discuss Long Term Capital Gain and why it is so critical from Income Tax Perspective. Just to recap, If the capital asset is held by an individual for a period more than min Holding Period as specified for each capital asset then Gain / ... Read More