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TRENDS
IN INDIAN COMPANIES TOWARDS VRS
Renaissance
is sweeping the world over. Mergers, Cost Control, Targets,
Low Cost of Funds, Outsourcing are a few yardsticks that determine
the success of a industry ensuring consistent growth. Industries
globally are realizing the need for effective manpower management
and the importance of quality over quantity.
Globally
the trend leans in favor to retain and reorientation of talented
employees. VRS has proven to be a effective tool in enhancing
the quality and growth of the employees and thereby retain
them which ploughs back to bolster the growth of the company.
Upgradation of technology with comprehensive training programs
is a must to infuse fresh blood in the system. The perils
brought about by change notably cease with adaptability and
improvisation.
The golden handshake has grasped many industries in India.
Bank of India reports 6000 employees quitting and Syndicate
bank has witnessed over 3000 employees opting for VRS. State
Bank of India the pioneer among Indian banks is also considering
VRS to realign its work force.
The
downswings for companies declaring VRS is the probable loss
of valuable staff and a surplus of manpower appending to the
woes of unemployment on the economy. The future however foretells
a massive change affected by VRS by many companies world over.
Others will inevitably follow the footprints left by the leading
companies. The mismatch experienced by the companies in allocating
their manpower and relocating their resources is temporary
and whether or not VRS is successful will be determined as
per the patterns adopted by the company.
INVESTMENTS
It
is essential to ensure and generate a regular fixed income
after retirement. This calls for an in-depth analysis of the
investment schemes available and channeling them in the most
profitable way.
The income should commensurate to run the expenses involved
to run a house, education, marriage and religious ceremonies
and also provide for unforeseen circumstances.
The general virtues one looks for in the investment schemes
are: - Safety, Liquidity, High yields & Regular income.
Safety
- It is very important that the investment should hold a high
amount of safety and security with regards to the company.
Liquidity
- The investment should also have enough liquidity so that
the funds can be liquidated and utilized when needed.
High
Yields - The investment should ensure maximum returns,
as this will form a major income to meet your expenses.
Regular
Income - The need for a regular fixed income is vital
from the investments as it becomes necessary to provide for
the routine and sudden expenses.
General
investment avenues are listed under: -
FIXED
DEPOSITS
Term deposits can be pitched for short term and
long-term periods. The maturity date can be arrived at by
wisely choosing the apt scheme. Banks and financial institutions
including flexibility coupled with an optimum rate of interest
offer ranges of schemes.
Tax
Angle
Interest Income is taxable.
Tax is deducted at source in cases wherein the interest
amount exceeds Rs 5,000/- from a single branch. The deposit
should be invested in different names and in diverse branches
to avert TDS.
General
Insurance Corporation
The general insurance corporation has the following
schemes designed for your retirement.
- Bima
Nivesh
- Immediate
Annuity
- Jeevan
Suraksha
- Deferred
Annuity
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Life
Insurance Corporation & Unit Trust of India
Monthly income schemes are available under UTI and
LIC to give you a fixed regular income. Many schemes in
LIC like Jeevan Akshay, Jeevan Suraksha where one can claim
a maximum deduction of Rs.10, 000/- from the gross total
income. Deduction is available under section 80C on
the amount of premium paid in most of the schemes of LIC.
Post
office Scheme
A regular monthly income can be generated through post office
monthly income scheme. The rate of interest is 8%.
Tax
Angle
The Interest income is taxable. TDS is not deducted.
Bonds
Bonds have a low risk security and also yield a high rate
of interest.
A few types of Bonds are listed below: -
- IDBI
regular income bond.
- ICICI
bonds
- Government
Infrastructure bonds
- Government
of India- 6 % Tax-free relief bond Tax Angle
- Investments
in infrastructure bonds are eligible for deduction under section 80C
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Shares
and Debentures
Investments in Shares are classified as high-risk investment.
Dividend received on shares is exempt from tax. Debentures
are secure investments. The entire amount invested is redeemed
at the end of the tenure.
Tax
angle
The interest amount is fixed and taxable.
Real
Estate
The amount received under VRS can be invested on
land or property.
You can now buy the dream house or rent the house and the
rent received Forms a major part of your monthly income.
Tax
Angle
You can avail of deductions on the repairs incurred on the
house. (Irrespective whether the amount was spent in actual
or not) Deductions are available on 30% of the amount of
rent after deduction of municipal taxes.
Jewellery
Although an idle investment, it is an essential investment
preferred by many.
Our financial experts have devised a unique package- The
VRS Planner to help you project your tax and thereby help
you to wisely plan your VRS amount and invest in order to
reap maximum paybacks. This calculator is available at our
site and is very user friendly as the simulation is prompt,
real time online with help lines at every field. You could
email your doubts on VRS to info@filemyreturns.com and we
shall be glad to solve them.
LIFE
AFTER VRS
Retirement is looked upon as a total break from work. All
the hard work one has put in for long years has reaped its
benefit in terms of monetary gains and the feeling of security
which you hold in your heart. In case of VRS the feeling
is similar though deep inside you may still desire to work
and utilize your talents to its maximum. This can also be
a springboard to explore your entrepreneurial skills.
Various
opportunities can be sought as per your ability and time
frame. Part time avenues can be discovered under counseling,
data management, teaching through tuitions or under contractual
basis, Skilled artists can undertake coaching novices in
a variety of subjects like painting, embroidery and other
forms of fine arts. A primary course of web designing can
also lead you to take on net designing from time to time.
Full
time jobs are definitely available as per your caliber and
experience. You can now shape your dream career!
Social
work - Various charity organizations need volunteers
to cater to the growing demands of special people. Such
institutions for social welfare perform a wide range of
activities and your help can prove to be a major contribution.
You could take up teaching for adult education, reading
for blind students, using artwork to cheer the mentally
disabled or just be cheerful to needy people in orphanages
and old age homes. Many organizations also pay their volunteers
for their valuable services.
Retirement per se refers to detachment from the standard
pattern of a job schedule. However it is wise to be occupied
for mental fulfillment and boosting ones self-esteem. We
have a developed an article as My Office at Home, which
gives you a plethora of jobs at home. We are on the anvil
of developing a section on Budding Entrepreneurs, which
will further enhance opportunities for people wishing to
once again establish themselves on the job arena.
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