Introduction to Voluntary Retirement Scheme (VRS)The Voluntary Retirement Scheme (VRS) is a program companies offer to allow employees to opt for early retirement before the standard retirement age, typically 58–60 years, in India. This scheme benefits employees seeking early retirement for personal reasons and helps companies reduce workforce and operational costs while enhancing productivity.What is a Voluntary Retirement Scheme (VRS)?The VRS allows employees to opt for early retirement and get benefits. Companies have introduced this to meet their downsizing needs and manage employee turnover costs.Key Points:Employee Benefits: The company provides retirement benefits like provident fund, gratuity and compensation so employees can pursue their hobbies or relax.Company Objectives: Helps companies reduce workforce, save costs and improve operational efficiency.Eligibility: The employee should be above 40 years and have completed 10 years of service in the company.How Does VRS Work?Eligibility Criteria:Employees must be above 40 years of age.Employees must complete 10+ years of service.Directors are not eligible.Government Approval: The company needs to get approval from the Government before implementing VRS.Tax Rules: Governed by Section 2BA of the Income Tax Act, offering tax benefits for employees receiving compensation.Post-VRS Restrictions: Employees cannot join another organization managed by the same company after opting for VRS.Objectives of VRSFor Employees:Allows early retirement with financial benefits.Provides an opportunity to pursue personal interests.For Companies:Facilitates cost reduction and workforce optimization.Offers a lawful alternative to retrenchment, avoiding trade union opposition.Features of VRSVoluntary Nature: Employees opt for VRS without coercion.Financial Assistance: Includes provident fund, gratuity, and tax consultation.Tax-Free Compensation: Up to ₹5 lakhs is exempt from income tax, provided it's availed within the same fiscal year.Non-Replacement: Vacancies created through VRS cannot be filled by new hires.Fair Compensation: Based on the last drawn salary and service tenure.Benefits of VRSFor Employees:Early retirement benefits with financial security.Tax-free compensation up to ₹ five lakhs.Access to provident fund, gratuity, and counselling for a seamless transition.Compensation equivalent to 45 days' salary per year of service or a multiple of the monthly wage.For Companies:Reduction in operational costs and workforce optimization.Improved productivity through a leaner workforce.Avoidance of trade union disputes.Maintains positive relations with departing employees.How is VRS Compensation Calculated?Compensation is calculated based on the employee's last drawn salary:45 days' salary for each completed year of service orTotal monthly salary multiplied by the months remaining until the standard retirement age.The higher of the two amounts is offered as compensation.Why Was VRS Introduced in India?Legal Constraints on Retrenchment: The Industrial Disputes Act of 1947 restricts companies from directly terminating employees for cost-cutting.Solution to Excess Workforce: VRS provides a voluntary alternative, thus avoiding a confrontation with the trade union as the alternative may be perceived as unfair to employees.ConclusionThe Voluntary Retirement Scheme (VRS) is a way to easily manage employee exits for both employees and companies. Employees benefit by retiring early with some benefits, and companies re-engineer their business legally. Understanding the rules, eligibility, and compensation structure is key for both to make the most of the scheme..

What is Leverage?Leverage is the strategic use of borrowed money (debt) to increase the potential return on investment, acquire assets, or fund business operations. It enables individuals and businesses to amplify their financial capacity and pursue growth opportunities beyond what their existing capital would allow.When an entity is described as highly leveraged, its debt is more significant than its equity, which gives an idea of its financial structure. Leverage can be a very effective tool but also poses substantial risks.How Leverage WorksFor Businesses:Using leverage, a company can buy new equipment, enhance productivity, or maximise shareholder value.These days, very few companies have been able to create a sound capital structure without combining equity and debt financing.For Individuals:Investors use leverage to increase their returns on investments.If you don’t have direct leverage, you can get indirect exposure by investing in leveraged companies.Key Factors:The conditions of the underlying asset determine the effectiveness of leverage:When the asset's value goes above the loan's interest cost, it amplifies profits.In some cases, asset value declines can compound losses to a point where they are higher than the initial investment.Advantages of LeverageMore Buying Power: Leverage allows you to buy more or invest with little to no capital.Higher Returns: When the stars align, leverage can magnify returns and increase profits.Business Growth: You can use leverage to grow your business, invest in technology or enter new markets and grow long term.Disadvantages of LeverageMore Risk: A drop in asset value below the interest rate of the debt can be a big loss.Industry Specific Vulnerability: Construction, oil production and automotive manufacturing sectors are more vulnerable due to asset value fluctuations.Insolvency: Misuse of leverage can lead to cash flow issues and push businesses into bankruptcy.Complexity for New Investors: First-time investors may struggle to manage leverage and lose more money.How Leverage Differs From MarginLeverage and margin are closely related concepts but serve distinct purposes:Leverage: Refers to the broader use of debt to increase financial capacity and returns.Margin: A type of leverage where you use existing cash or securities as collateral to borrow money to buy more securities or futures contracts.In other words, a margin is a form of leverage where the borrowed money is tied to collateral..

Mutual funds (MF) and Portfolio Management Services (PMS) both are Professionally Managed investment products available for the investors. In India, investors have the option to invest in equities through Mutual Funds (MFs) or Portfolio Management Services (PMS). While both MFs and PMS may involve similar stocks, the implementation and management approaches differ significantly, as do the portfolio construction strategies. Mutual Funds, though managed by professionals, are not customized to individual preferences. In contrast, PMS offers a more personalized approach, where fund managers work collaboratively with clients to create bespoke portfolios tailored to their specific needs.

Planning your finances can lower your taxable income and increase your savings. You can save tax without investing in a single scheme and just going ahead with your regular expenses. As an employee, you can avail of certain deductions and exemptions during a financial year and lower your tax liability considerably. You can take advantage of these while filing your income tax return for FY 2023-24.Understanding New vs Old Tax RegimeA new tax regime was introduced in Budget 2020 wherein the tax slabs were altered, and taxpayers were offered concessional tax rates. However, those who opt for the new regime cannot claim several exemptions and deductions, such as HRA, LTA, 80C, 80D , and more.The old regime is the tax system that prevailed before the introduction of the new regime. Under this regime, there are over 70 exemptions and deductions available, including HRA and LTA, that can reduce your taxable income and lower tax payments.

What is a Lien?A lien is a legal claim or right made by a creditor against an asset or property used as collateral to secure a debt. The primary purpose of a lien is to ensure that the underlying obligation, such as a loan repayment, is fulfilled. If the borrower fails to meet their obligation, the lien allows the creditor to seize and sell the asset or property.Liens can arise voluntarily (e.g., through a loan agreement) or involuntarily (e.g., through a legal judgment or tax authority). They are a fundamental tool in finance and commerce, ensuring security for creditors.How Does a Lien Work?Loan Agreement: When a borrower takes a loan, the lender may place a lien on the asset purchased with the loan (e.g., a car or house).Legal Right: If the borrower fails to repay the loan, the lien gives the lender the legal right to seize and sell the asset without the borrower’s consent.Public Record: Liens are usually recorded with government authorities to advise the public about the claim against the property so that people can be preserved from unknowingly acquiring encumbered assets.Release of Lien: The lien is removed once the loan is fully repaid, and the borrower becomes the asset's rightful owner.Types of LiensBank Lien:It arises when a financial institution provides a loan for purchasing an asset, such as a car or house.The bank retains a lien on the asset until the loan is repaid.Judgment Lien:Imposed by a court after a legal judgment, usually in cases of nonpayment.Allows the creditor to liquidate the debtor's assets to recover the owed amount.Mechanic’s Lien:Awarded to contractors or service providers who have not been paid for their services.It allows them to claim a legal right over the debtor's property until payment.Real Estate Lien:It involves placing a claim on real estate properties, often in cases of mortgages.The lender can seize and sell the property without paying the mortgage.Tax Lien:Created by law when taxpayers fail to pay their taxes.Tax authorities can claim the taxpayer’s property to recover unpaid taxes.Advantages of LiensSecurity for Creditors: Liens assure creditors by securing their financial interests against default.Incentive for Borrowers: The risk of asset seizure motivates borrowers to fulfil their obligations.Enforceability: Liens allow creditors to enforce repayment legally without additional agreements.Transparency: Publicly recorded liens protect buyers and lenders by clarifying ownership and financial obligations tied to assets.Flexibility: Borrowers can access loans using assets as collateral, even if they don’t have liquid funds.Challenges of LiensAsset Encumbrance: Borrowers cannot sell or transfer assets under lien without paying off the obligation.Complexity: The legal process of lien enforcement or release is lengthy and expensive.Public Record Impact: A lien can make the asset less marketable because it deters buyers..

Many individuals own the residentship of a particular country but earn their living in a different country. As per the Income Tax Act of 1961, you must pay taxes against your earnings. So, if you are generating income from a different country, you may need to pay taxes to both your residential country and the one you are earning from. However, paying double tax for the same income is undoubtedly unfair. To prevent double taxation, the Fiscal Committee of the League of Nations introduced DTAA in 1927. Read along to know more about it!What is DTAA?DTAA stands for Double Taxation Avoidance Agreement.

Gone are the days when you needed to stand in a long queue at the bank and wait for your turn for a balance enquiry. The State Bank of India has launched hassle-free digital banking facilities for quick and convenient operations for various functions. The SBI balance check facility allows you to get the latest update about your account balance promptly without visiting the bank branch.There are different ways to inquire about your SBI bank account balance. Read on to know more. Different Methods Of SBI Balance Enquiry in 2025If you are an SBI bank account holder and want to know how to check your SBI balance instantly, you can do so through the following methods:Missed Call Facility - 919223766666SMS Service - SMS ' ‘BAL’ to 919223766666ATMNet BankingMobile BankingSBI Whatsapp BankingSBI passbookCalling the toll-free number - 1800 1234, 1800 2100, 1800 425 3800UPIUSSDCheck SBI Account Balance Through Missed Call FacilityMissed call is one of the most convenient ways to check your SBI bank balance. With this new feature, you can get your account balance, mini statement and so on by just giving a missed call.

What is Accounting?Accounting is systematically recording, summarising, analysing, and reporting financial transactions related to a business. It provides essential financial insights by generating reports such as financial statements that summarise:OperationsFinancial PositionCash FlowsKey Features of AccountingScope: It applies to all businesses, from small businesses run by a bookkeeper to the world's largest and most highly developed corporations with dedicated finance departments.Purpose: It assists management in making decisions based on structured and unambiguous information from investors, regulators, and taxation authorities.Advantages of AccountingFinancial Tracking: Allows income and expenditures to be tracked.Compliance: Assures legal and tax compliance.Decision-Making: Provides the data for factual and quantitative analysis of business strategies.Investor Confidence:  Provides transparency to stakeholders, which yields trust.Performance Analysis: Helps analyse operational performance and profitability.ConclusionAccounting plays an inevitable and indispensable role in the operation of business activities. It gives businesses an accurate and elaborate approach to maintaining financial clarity, complying with rules, and sustaining information for better decision-making. The scale of an enterprise determines the gravity of the essence of accounting in a given enterprise, which becomes decisive when the business becomes big, large, or complicated. .

What is an India ETF?India Equity-Traded Funds (ETFs) track assets listed on Indian stock exchanges, with the National Stock Exchange (NSE) being the most prominent. The NSE offers links to India’s most widely traded stocks, and various indexes, such as NIFTY 50. These ETFs can follow global indexes, sectors, or market caps, which provide investors with broader exposure to India’s growing economy.Breakdown of India ETFIndia's economy is growing at a pace faster than most other countries, so ETFs are an attractive investment here. The information technology, finance, and healthcare sectors are the major growth areas. The government's digitization initiatives will also boost the technology sector.

With a total market capitalisation of more than $900 billion, the cryptocurrency space has attracted the attention of several investors, including those seeking quick cash with few regulations. ICOs are a highly popular method of raising money in this space.Investors are drawn to ICOs for their dream of grabbing an early to successful crypto. As of April 2018, ICOs raised a whopping USD 5,014,952,132. Here’s more about ICO.What is an ICO?An ICO or initial coin offering is an event where an organisation sells new crypto to raise money. In exchange for their financial contributions, investors receive cryptocurrency. In several ways, an ICO is the crypto version of an IPO (initial public offering) in the stock market.Working of an ICOWhen an organisation decides to launch an ICO, it declares the rules, date, and purchase procedure in advance.