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Mahesh

Mahesh Padmanabhan  |120 Answers  |Ask -

Tax Expert - Answered on Jun 06, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
He is also a qualified information systems auditor. ... more
Krishnamurti Question by Krishnamurti on May 27, 2023Translate
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Sirji I took VRS and in sanction I was a loser by what was described as statutory company rules allowed me retirement based on minimum 90 days letter of notice. It said I had requested for relief on 31st December and Notice period was short to disallow the short notice of less than a month. Sirji I'm not allowed even arguably any scope of lost settlement in settlement order and hence I have a desire to know your reputed comments for advice WhatsApp number SUBRAMANIAM.K

Ans: Hi Mr. Krishnamurti
I have not understood your query as it does not bring out the facts clearly. Regardless, i would state in broad terms how the VRS tax exemption works.

Section 10(10C) of the Income Tax Act and Rule 2BA of the Income Tax Rules define the exemption of amount received on VRS and the conditions to be met. If you meet the criteria as laid down therein then you would be eligible to consider the exemption.

I did not understand your point on min 90 day notice period. Is that applicable to all employees opting for VRS or limited to you? I state this because VRS rules have to be common for all and there cannot be variations to the policy and different implementation to different classes of employees.

I guess you may need to take the full set of documents either to your CA or a lawyer to evaluate if there is any legal flaw in the manner of implementation of the VRS scheme.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hello Sir/Madam, This has been a practice of my company to delay the Full & Final settlement for employees who resign from the company. The final settlement along with the experience letters will be received after almost 2 months of leaving the organisation. This is the case with normal employees who serve three months notice period. These 2 months are very chaotic as the new company keeps requesting for the experience letters. There is no specific reason cited by the organisation for the delay in making the settlement. Sometimes the reasons seem petty. As a manager, I know this is wrong but I was helpless. 3 months back, our organisation had laid off many employees including me. They informed us that we will be getting three months salary as severance pay. The first two months were credited on time i.e 1st of each month. However, the third month payment has been stopped. They informed us it will be settled with the F&F settlement. There were no timelines mentioned to us. There is no letter issued to us - Neither laptop acceptance or resignation acceptance. I am getting job offers but they expect a firm date for joining along with the experience letters. I am not in position to furnish them these details. What can I do in this case? The company that I worked for is a BSE listed firm with strong financials.
Ans: Dear

I can understand your situation. What ai would suggest is better open and transparent with your potential employer, show them your resignation letter and the salary credited. I am sure they will appreciate.

All the best.
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Financial Planner - Answered on Mar 03, 2024

Asked by Anonymous - Mar 03, 2024Translate
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I'm contemplating a career change in my late 30s, earning Rs 14 lakhs annually. How can I navigate this transition while ensuring financial stability and working towards long-term goals such as retirement?
Ans: Transitioning to a new career in your late 30s while maintaining financial stability and planning for long-term goals like retirement requires careful consideration and planning. Here are some steps you can take to navigate this transition effectively:

1. Assess Your Skills and Interests: Reflect on your skills, interests, and values to identify potential new career paths that align with your strengths and passions. Consider seeking career counseling or taking career assessment tests to explore different options.

2. Research Potential Careers: Conduct thorough research on the industries and roles you're interested in pursuing. Look into job market demand, salary potential, and growth opportunities to ensure your chosen career path is financially viable.

3. Skill Development and Education: Determine if you need to acquire new skills or education to transition into your desired field. This could involve enrolling in courses, obtaining certifications, or pursuing higher education such as a degree or specialised training programme.

4. Financial Planning: Evaluate your current financial situation and create a budget to understand your income, expenses, and savings. Factor in any potential changes in income or expenses associated with your career transition. Consider setting aside an emergency fund to cover unexpected expenses.

5. Debt Management: If you have any outstanding debts, develop a plan to manage and pay them off efficiently. Prioritise high-interest debts like credit card debt while maintaining minimum payments on other loans.

6. Retirement Planning: Review your retirement savings accounts like the EPF, and assess whether you're on track to meet your long-term retirement goals. Consider consulting a financial advisor to develop a personalised retirement plan based on your age, income, risk tolerance, and retirement objectives.

7. Health Insurance and Benefits: Evaluate the health insurance and other benefits offered by your new employer, if applicable. Ensure you understand the coverage provided and any associated costs. If transitioning to self-employment or freelancing, research options for obtaining health insurance coverage independently.

8. Networking and Building Connections: Network with professionals in your desired industry to gain insights, advice, and potential job opportunities. Attend industry events, join professional associations, and leverage online networking platforms like LinkedIn to expand your network.

9. Side Hustle or Freelancing: Consider starting a side hustle or freelancing in your desired field while maintaining your current job. This can provide additional income, valuable experience, and a smoother transition into your new career.

10. Evaluate Risks and Rewards: Assess the risks and rewards associated with your career change, including potential income fluctuations, job stability, and work-life balance. Be prepared to adapt and make adjustments as needed throughout the transition process.

By following these steps and carefully planning your career transition, you can navigate the change while maintaining financial stability and working towards your long-term goals, including retirement.
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