[bullboy]

Is leave encashment is taxable ? There are certain rules in IT act under section 10A. My employer has taxed my en cashed leave when i resigned.

[joslicx]

Originally Posted by bullboy

Is leave encashment is taxable ? There are certain rules in IT act under section 10A. My employer has taxed my en cashed leave when i resigned.

Yes it is fully taxable. It is an extra "income" for you and all incomes are to be clubbed together for taxing purposes unless specifically exempted which leave encashment is not!

[Sunrise]

Originally Posted by bullboy

Is leave encashment is taxable ? There are certain rules in IT act under section 10A. My employer has taxed my en cashed leave when i resigned.

Even i had a rude shock when this happened, however another point to note is that its basic pay that we get. That is the reason why a lot of co's have this annual shutdown where people take forced annual leaves. Its only annual leave we can en cash, not the sick, casual leaves etc

[prince_pervez]

Originally Posted by joslicx

Actually some economists feel gold is not that great an investing option. Nonetheless it should be part of ones investment portfolio as gold acts as a wonderful hedging bet in the extreme case when the currency becomes insolvent! What that means is by some extreme misfortune, if tomorrow the value of rupee becomes close to zero (very high inflation, remote possibility but not zero probability) then still it will only be gold which will still hold its value (whatever is prevailing in the international market). Therefore one should always buy the actual metal and not some papers! Those ETFs might not have any meaning in such a scenario!

If you really want to invest in gold, buy solid bars and then keep them some place safe! Now thats an altogether another problem how to keep it safe!

Originally Posted by joslicx

For the simple reason that anything on paper will have just paper's value!!!

This kind of situation will happen if there is a big internal war or terrible instability or military takeover. Courts would typically become meaningless and there would be no question of rights. Think of countries like Zimbawbe etc. What would you do if the ETF issuing authority simply refuses to honor its liabilities!

Originally Posted by joslicx

Yes thats why I said the problem is how to keep it safe!

Banks liability is only till Rs. 1L! And in case of govt failure etc, there is no guarantee they will honor it!

How about opening acounts in swiss banks

@joslicx. Couldn't help but appreciate your contributions on the last page.
Right on all counts.
Right now, in light of failing governments (needless to say all the superficial markets and money out of air), natural disasters, precious metals, not diamonds even, will hold their worth everywhere.
I am lucky to have invested in precious metal when it was a 'big conspiracy theory'. Look at the rates today. I can do nothing but smile.
Just shows that not many people take everything they don't like as conspiracy theories.
Right now anything thats is not physical and has little intrinsic value carries a risk which needs to be covered and converted gradually.

Even I am facing a problem of getting rid of bank lockers. Many people convert it into jewellery for famil but there is a loss in that conversion too.
I am in a sure dilemma.

As of now the best investments look like precious metals and getting that home loan principal to managable levels. Land is also a problem after a governement fails or you have hooligans of corrupt corporators claiming your land to be government's. We did sell a piece of land to another bigger goon who in turn got us a 2 BHK flat for it at unbelievable rates in Pune.

I cannot but assert to have minimum cash (paper) balance and electronic money balance.

[bullboy]

@joslicx
please see this link.
Moneycontrol || Wealth >> Tax planning >> Leave encashment: Taxable or not?
@Sunrise ,
Only earned leave can be encashed.

[anekho]

Guys, not sure if this the right thread but, What is the procedure for an NRI to get a PAN card/number? How long does the process take?

I've tried looking around on the net but ended up thoroughly confused.

Thanks in advance!

[bikxsans660]

Guys,

Is it better to invest in a MF (SIPs) or in a FD? Considering that i want my returns after 5 years. Should i go for tax-free schemes in either options. Will i be able to redeem my investments whenever i want within the 5 years?

Suggestions!

[ghodlur]

Originally Posted by bikxsans660

Guys,

Is it better to invest in a MF (SIPs) or in a FD? Considering that i want my returns after 5 years. Should i go for tax-free schemes in either options. Will i be able to redeem my investments whenever i want within the 5 years?

Suggestions!

You haven't specified any particular objectives you desire to achieve in 5 years. If its just for savings then better do it in a couple of 5 star rated Mutual funds through SIP. In this case the redemption after one year does not generaly carry any exit loads.

If you would needing money anytimw within the next one year then Fixed deposit is ideal. However you may have to pay premature withdrawal penalty if FD is broken before the maturity period.

[Warwithwheels]

Originally Posted by anekho

Guys, not sure if this the right thread but, What is the procedure for an NRI to get a PAN card/number? How long does the process take?

This is a fairly simple process if you have the required documents in order. You can even fill the PAN application online and fedex the required documents to the TIN (Tax information network) back office in Pune.

If your documents/ photograph are found to be in order, it usually takes about two to three weeks. The process is like this.... TIN back office verifies your documents and forwards them to the Income Tax Department. The IT Department allots you a PAN (Permanent Account Number) and designates an A.O (Assessing Officer) based on the address you have given in the application.

The best part is you can even get your PAN card delivered outside India, provided you are ready to shell out another 900 bucks for it. Otherwise, the whole process will set you back by Rs. 100 or so only.

Please be warned that the documentation has to perfect, if your doing it online else be prepared to be taken for a ride by the TIN guys.

Just in case if you have a person to do it for you in India, the best thing would be to do it in person.

Personally, had a tough time with the TIN Call center guys in convincing them that my documents are in order. It almost took two long months to get the PAN alloted. Phew!!

You may look for the TIN - FC (Facilitation center) in your immediate vicinity in this link below.

TIN Facilitation Centers

Check out the link below to apply PAN online.

https://tin.tin.nsdl.com/pan/index.html

FAQ's

Frequency Asked Questions :: PAN :: General

Good Luck!

[bikxsans660]

Originally Posted by ghodlur

You haven't specified any particular objectives you desire to achieve in 5 years.

Let's say i have 50k's and looking for a investment window of 5 years. Should opt for the investing in MFs for Blue chip companies through SIP ( for 5 years ) or better stay with the FDs.

[rishab.k]

Put it in a large cap MF (like HDFC Top 200) through SIP (4K every month).

[anekho]

Originally Posted by Warwithwheels

This is a fairly simple process...

Hey! Thank you for the detailed reply, I really appreciate it.


I guess the best course of action is getting it done in Chennai when I'm there next.

[joslicx]

Originally Posted by bikxsans660

Let's say i have 50k's and looking for a investment window of 5 years. Should opt for the investing in MFs for Blue chip companies through SIP ( for 5 years ) or better stay with the FDs.

Is it like you want to invest 50k a month or you have 50k now to invest?

If you want to invest 50k monthly then SIP is the way to go.

If you have 50k now then no need to go for any SIPs. You can invest in one go! why let the money rot in the bank when you can invest all of it now itself.

SIP as an investment instrument is only intended to bring a disciplined approach towards investing in the investors behavior. So if you have regular income then SIP is the way to go for investing. However, lets say if you win a lottery of 50k and want to invest that, then do it in one go. no need for SIP in that case.

[bikxsans660]

Originally Posted by joslicx

Is it like you want to invest 50k a month or you have 50k now to invest?

If you want to invest 50k monthly then SIP is the way to go.

If you have 50k now then no need to go for any SIPs. You can invest in one go! why let the money rot in the bank when you can invest all of it now itself.

SIP as an investment instrument is only intended to bring a disciplined approach towards investing in the investors behavior. So if you have regular income then SIP is the way to go for investing. However, lets say if you win a lottery of 50k and want to invest that, then do it in one go. no need for SIP in that case.

Yes i have 50k for investment. Only confusion is whether FD is better off or the Mutual funds. I guess SIP wont make sense if i have bulk to invest. I'd rather break down my 50k and have different portfolios with different companies. Suggestions.

[ghodlur]

Originally Posted by bikxsans660

Yes i have 50k for investment. Only confusion is whether FD is better off or the Mutual funds. I guess SIP wont make sense if i have bulk to invest. I'd rather break down my 50k and have different portfolios with different companies. Suggestions.

If you are not looking at the 50K for the next 5 years the it should be SIP in good MF's but if you would be needing the money say within a year or maybe a little after then you should go for Bank FD's.

Even if you dont want to invest in SIP, you can opt for lumpsum investment. It all depends on your needs as I had said earlier.