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Cover Story

  • Many companies are shedding the rigid salary structure and allowing employees to rejig their pay. Learn how to make the most of your income by restructuring your salary efficiently.How to redesign your pay structureHow to get the best of both worlds
  • Your salary slip lists out the fixed part of your monthly take-home income. Here’s what you should know about the different components mentioned in the salary slip.
  • The variable pay comprises the allowances and reimbursements that come to you as cash. Learn how to make the best use of them by rejigging their proportions in your compensation package.
  • No two compensation structures, even in the same industry, are always similar. Comparing apples with oranges, as one typically does, is not a useful exercise.
  • Once offered as a way of dodging tax, perks are today being used to retain employees and increase productivity.
  • It is important to structure a package in such a way that the basic is not too large to be taxed too much, but is large enough for the provident fund contribution to make sense.
  • There is no one-size-fits-all kind of ideal salary structure. It all depends on your needs and financial situation. Money Today shows you how people at different income levels and age profiles should restructure their pay packages.
  • Many employees are opting to be consultants to avoid deductions and reduce taxes. But watch out for the pitfalls before you become one.
Upfront Benefits of market cycle

Benefits of market cycle

The only way to master the art of stock investing—low risk and high returns—is to take the time-tested route of long-term investing.
Mutual Fund Taurus Libra Taxshield perform well

Taurus Libra Taxshield perform well

The Taurus Libra Taxshield, with minuscule assets under management, has delivered exceptional returns in the past year. Equity diversified funds are steadily regaining lost ground.

FMP Plus

Money Today-Plexus Management analyse JP Morgan India Alpha fund. Though it is a low-risk scheme, but not completely risk-free.

'Volatility offers opportunities'

Volatility gives an advantage to those who invest in equities for the long term.The present scenario will prove to be an ideal opportunity.

Taxation terms

While investors should consider several risk-return measures before investing, an important factor to take into account is the manner in which income or profits from investments are taxed.
BASICS If you are a depositor or a borrower

If you are a depositor or a borrower

The high cost for borrowers is high income for depositors. Today, almost all banks offer a 10% rate on fixed deposits of 1 year. But even this rate is lower than the rate of inflation.
Expert View Why the CTC makes sense

Why the CTC makes sense

Using the CTC in formulating a salary structure makes the compensation structures more flexible and attractive to existing and potential employees.

Inching back into business

As is to be expected in any fundamentally solid business, the best time to invest is when it’s in trouble. It’s in this context that Punj Lloyd’s first quarter results seem like a fairy-tale comeback.
Stocks Fertiliser stocks perform well

Fertiliser stocks perform well

Fertiliser stocks gained ground as a new urea policy is expected to benefit these companies.

Some hopes, many fears

Despite the recent bullish trend and hopes of a revival, Dipen Sheth opts to retain the 50% equity exposure and wait for the worst to be over.

The benefit of IPO grading

In response to the Money Today story on how rating of IPOs has been of little help to retail investors (Read 'Do We Need IPO Grading?') Crisil’s Arun Panicker argues that grading helps if investors know where exactly it belongs in their investment decision process.

Bigger orders, better bets

The state of a company’s order books is a good indication not only of the market demand but also of its capacity to generate higher returns on its stocks.
Insight Your world: Currencies

Your world: Currencies

The rupee has reversed its trend by gaining against major currencies.The gain against the US dollar was minimal but was steeper against the Australian and European currencies.
Your Wallet Before you buy a water purifier

Before you buy a water purifier

Drinking untreated tap water is seen by many as akin to writing a suicide note—death by disease. Little wonder then that it has led to a booming bottled-water business.
Books Be wiser in four months

Be wiser in four months

With tips on issues ranging from career to buying a house, Pond covers every possible aspect of personal finance in a simple and engrossing style. But experienced investors may find the book of selective use, says Namrata Dadwal.
Travel Time your travel

Time your travel

Off-season travel or off-beat locations are the surest way to big savings. Here is a holiday calendar to help you plan a memorable trip at affordable rates.
Real Estate Tips to buy a pre-owned home

Tips to buy a pre-owned home

If you are buying a pre-owned house, make sure you inspect it for structural and legal soundness to avoid any nasty surprises later on.
Careers Confident of a LiL venture

Confident of a LiL venture

This 24-year-old opted out of IIM campus placements to launch a unique Web start-up called Life in Lines.
New Business Soft start, sharp growth

Soft start, sharp growth

At 16, Divyank Turakhia set up a software company along with his brother. Within 10 years, the two have turned it into a Rs 1,400 crore global entity.
Portfolio Doctor Going wrong with fundamentals

Going wrong with fundamentals

Kolkata-based Saibal and Sumana Sinha must understand expense accounting and invest the monthly surplus in mutual funds to exploit their risk appetite.
Tax Does non-payment of EMIs effect on tax exemption?

Does non-payment of EMIs effect on tax exemption?

Yes, Section 24(b) of the Income Tax Act allows deduction of interest due on home loan from the head 'Income from house property'.
Banking Read between the cards

Read between the cards

RBI’s recent recommendations are aimed not only at streamlining credit card operations, but also at making the customers more aware of their rights.

4 things your ATM will soon do

Banks are all set to upgrade the ATMs to help reduce footfalls in their branches. Here’s how.
Talk Back 'There was a calculation error in Query Corner' (June 26, 2008  issue)

'There was a calculation error in Query Corner' (June 26, 2008 issue)

Thank you for pointing out the error. It’s heartening to know that our readers are well informed and go through the issue with an eagle eye.
Editors Note From the managing editor

From the managing editor

Some of the most profound lessons in life are also the simplest. This issue's cover story explains one more tenet of financial wisdom-that the composition of your salary can be as important as the amount.
My Idea Roping in profits

Roping in profits

Her paintings are not the usual oils-on-canvas. Using jute rope, 55-year-old Varsha Rishi creates works of art that have helped turn her unique hobby into a money-making venture.
Query Corner What is the meaning of a growth stock?

What is the meaning of a growth stock?

All stock prices do not move at the same rate. Some stocks shoot up very quickly while others move at a leisurely pace.
Now and Then Foamy rise

Foamy rise

If you have been focusing on fuel and food inflation, scan your shopping bill more closely.