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EXIT PROCEDURE: When an employee intends to resign, he/she has to submit his/her resignation letter to his /her concerned

department head, giving the reason for his/her leaving the organisation, and date to be relieved etc. Upon receipt of such resignation letter , the concerned department head will discuss with the employee concerned and try to convince him/her to retain with the organisation. If the employee is firm on his/her decision, the department head will forward the letter with his comment to HRD for further course of action. HRD will have one more round with the concerned employee and try to find out the real reason for his leaving the organisation and try to retain him /her with the organisation. If the employee wants to leave the organisation, then HRD will request the employee to fill the separation clearance form and also the satisfaction survey report and conduct exit interview. HRD will issue acceptance of resignation letter to the employee indicating the notice period he/she needs to serve. Incase the employee wants to leave the organisation, either the employee has to work till completion of his/her notice period or he/she has to pay salary for the notice period as per terms of appointment. Depend upon the performance of the employee, management can waive the notice period as a special case. Incase of dismissal of employee, the organisation will have no liability of payment of salary to such employee. Incase the employee is asked to resign due to poor performance, then payment of notice period of salary will be applicable, on case to case basis at the discretion of management. If any employee who has served lesser than one month and on probation and wants to resign, notice period can be waived at the discretion of management depend upon nature of job handled by the employee. On or before the last day of his/her leaving the organisation, the employee has to complete all his/her pending work, and hand over the list of pending works to the concerned person, identified by the organisation and the employee should get all the clearance from duly signed by the concerned department. Upon receipt of all documents as above, HR will forward the documents to finance department to make his/her full and final settlement.

Finance department will verify their records to find out the outstanding amount lying in the name of employee and deduct while making their full and final settlement. Also finance department will ensure that clearance from all the departments are obtained by the concerned employee. Also to ensure the travel advance, income tax declaration for the period upto which he/she worked etc. Employee to hand over all the materials provided to him by the company viz. ID card, books and periodicals, drawings, lap top, mobile, telephone, office keys, insurance and medical card for self and spouse, children, CDs, floppies, access card, safety shoes, and any other material provided to him and get clearance from concerned department. Encl: Exit interview Separation clearance form EMPLOYEE PULSE (Rating scale: 1 to 5 (5=Very good)(4=Good)(3=Satisfactory)(2=Poor) (1=Worst /Need change) Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 How satisfied are you with our company How satisfied are you with our companys employee policies How satisfied are you with the fairness of the way the company treats all employees How satisfied are you with your job security at our company How satisfied are you with the PM process and the outcome How satisfied are you with overall communication at our company How satisfied are you with the facilities provided by our company How satisfied are you with your job How satisfied are you w.r.t. what is expected out of your work How satisfied are you with your level involvement in your work How satisfied are you with your salary in the company How satisfied are you with the opportunities to advance in our company How satisfied are you with the training & development provided by our Co. How satisfied are you with the supervision you receive What are the three things that you feel needs to be improved the most at our company 1. 2. 3. What are the three things that you feel need to be discontinued at our company 1.

Q16

Q1

2. 3. What are the three key things/initiatives that can be introduced. 1. 2. 3.

Name of the Employee Department Signature of Employee ( To be attached with separation form by the employee) To be filled by HR Emp. Id Designation Date of Joining Date of Relieving CONCERNED DEPARTMENTS Remarks Sign & Date

Name Dept/Section Location Date Resignation

of

Item Documents Key/Drawer/Filing Cabinet Books/Drawings Laptop/Mobile

HR DEPARTMENT Item Remarks ID card/ Access card Notice period Insurance/Medi.ca rds Gratuity Exit interview Leave balance Travel bills Telephone/Mobile Travel booking Any other Item Deletion of Mail Id Floppies/CD/Lapto p Income Tax FINANCE DEPARTMENT Remarks Sign & Date

Sign & Date

Full & Final Medical Reimbursement Any other STORES DEPARTMENT Item Safety Shoes Tools & Tackles Rain coat/Umbrella Any other Remarks Sign & Date

Note: The concerned Departmental Head/Sectional Heads are authorised to clear their respective areas . Strike out which are not applicable. Please attach one copy of resignation letter alongwith clearance form for easy clearance by DH.

Tax saving in a gift pack

Do you have some excess cash that you want to invest? Maybe you can think of an indirect method of investing (that is not in your own name), and save some tax on the income. Investing in assets or financial instruments directly in your own name will increase your tax liability and could also push you into a higher tax bracket. You can take a slightly circuitous route on investments for better mileage. One way of saving on taxes is to gift your children and parents assets and cash for investments. As per the current laws, any gift received in cash or kind exceeding Rs 50,000 is taxed in the hands of the recipient as "income from other sources". However, this rule does not apply to gifts received from relatives. Additionally, any gift received on the occasion of your marriage, under a will or inheritance is not taxed in your hands. So who is a relative and what is a gift for the purpose of claiming tax benefits? "Relatives, for the purpose of taxation, include spouse of the individual, siblings, brothers and sisters of the spouse, brothers and sisters of the parents, and any lineal ascendant or descendant of the individual or the spouse," says Vikas Vasal, executive director, KPMG India. As for gifts, the income-tax (IT) laws say any transfer of money in cash

or through a cheque as well as transfer of movable or immovable assets, such as property, shares and securities, jewellry, paintings and sculptures, is considered as a gift. When you transfer a property, you may have to get the transfer registered, which attracts stamp duty and registration charge. "The Indian tax laws do not contain mandatory provisions to have a gift deed (a registered legal document with appropriate witnesses) in case of transfer by way of gifts. However, it is always preferred to have a gift deed so as to avoid any gift being considered as taxable or being considered as unexplained cash, investments or assets," says Sonu Iyer, partner, tax and regulatory services, Ernst & Young, India. Though there is no tax on gifts, all gifts in excess of Rs 50,000 (other than those from relatives) and income generated through them get clubbed with the recipient's taxable income. However, income earned by assets gifted to minor children, spouse and son's spouse are included in the income of the donor for taxation. If you want the money earned to be treated as independent income of your minor children, spouse or son's spouse, you will have to prove that the recipients had used their own acumen for making money from the gifted assets. It might not be easy to satisfy the taxman that the income through the asset you gifted is not a passive investment income and has been earned independently by your spouse or minor children. So the easiest way of saving tax is by gifting money or assets to your major children and parents who don't have any income of their own. Let's assume that your parents are senior citizens (above 60) and have no income. You can gift them any amount of cash for investing in high- return instruments such as senior citizen's savings scheme. As senior citizens do not have to pay any tax for annual income up to Rs 2.5 lakh, the interest income does not become taxable unless it exceeds this exemption limit. This means you can invest up to Rs 25 lakh through each of your senior parents without any source of income if the annual interest or return is 10 per cent. You can invest up to Rs 50 lakh through your senior parents and have a tax-free annual income of Rs 5 lakh. If your parents are above 80, they

are entitled to tax- free income up to Rs 5 lakh per year for "very senior citizen" category introduced in the 2011-12 Union Budget. You can invest up to Rs 50 lakh through each of your "very senior citizen" parents in instruments that give 10 per cent annual return and avoid the taxman for interest income up to Rs 10 lakh earned by both of your parents together. You can save a total of Rs 3 lakh (30 per cent of Rs 10 lakh earned as interest income) in tax each if you are in the highest tax bracket. So you can invest a total of Rs 1 crore through your parents and save up to Rs 6 lakh in taxes on the interest income of Rs 10 lakh. If you gift the money to your major daughter for investment, the interest earned from the amount will be taxable only after it crosses the exemption limit of Rs 1.9 lakh annual income. The income from money invested through your son above 18 will become taxable when it exceeds Rs 1.8 lakh annually. Even when the interest income brings the recipient into the tax net, you still have the advantage of paying less tax then what you would have paid on investing directly. If you have both parents above 80 and two major daughters, you can invest up to Rs 1.88 crore and have a tax-free income of up to Rs 18.8 lakh. Even if you don't have major children, you can still save taxes by creating a trust for benefiting your minor children. Now, when you start planning your taxes for the current financial year, make use of this provision to save big on taxes. Make use of the gifting provisions to optimise taxes while making your family financially secure. As you will be giving money on the basis of mutual trust, be sure that the recipient won't take undue advantage of your trust.

From top of my head, i can advise that Yes, a company can hire a expatriate on two scenarios i.e. as Employee or Consultant/Advisor. In both the situations their contract and job descritpion will assist for taxation purpose. the Visa could be a small time business visit or as employee visa. The person can apply to its nearest high commission, embassy and submit a request for both the categories with supporting documents i.e. appointment letter, invitation letter & any declaration required by the official. Please ensure that the contract your company signs is full proof and indeminifies your company from any liabilities arising after hiring a expatriate. Upon grant of visa he/her will have to get registered at the nearest police station or FRRO office in your city which is compulsory for any foreigner residing in country for more than 14 days. A resident employee is laible for taxation if he/she stays in country more than 180 days however, this rule is country specific and depends on the tax treaty with India (if any). There are other more compliances too, however, if you need more assitance send me a mail on HREC.ajay@yahoo.in