Exchange Rate

[intelinside]

Hi,

I have a little confusion related to what Exchange rate to apply for calculation my previous earnings.

What Exchange Rate should i use?

I am applying as a salaried person:

So will it be the exchange rate on the date of my last salary paid?

OR

My company deducts some Tax Amount from my each months salary and submit it to the bank after 15 days of salary issued.

So, should I use exchange rate on this date when the tax was paid against my last salary which is after 15 days of my salary issued?

Help required urgently.

Regards,

[intelinside]

Hi,

I have a little confusion related to what Exchange rate to apply for calculation my previous earnings.

What Exchange Rate should i use?

I am applying as a salaried person:

So will it be the exchange rate on the date of my last salary paid?

OR

My company deducts some Tax Amount from my each months salary and submit it to the bank after 15 days of salary issued.

So, should I use exchange rate on this date when the tax was paid against my last salary which is after 15 days of my salary issued?

Help required urgently.

Regards,

Sorry guys, I have got my answer on tier1 policy guide. It states:

112. An applicant should use the closing spot exchange rate on the OANDA website at http://www. Tier 1 (General) Policy Guidance page 18 of 41 oanda.com/convert/classic on the last day of the period for which he/she has claimed earnings in that currency. This is an independent website, for which we are not responsible.

I nearly escaped a different band of earnings table which could have reduced my points by 5 points

[vijaymaghnani]

on the last day of the period for which he/she has claimed earnings in that currency

Can you plz explain this statement?.. does it mean THE LAST DAY OR MONTH or Last day before applying..

[rajesh9pl]

No explanation is required. Just read few times and you will get the answer.

on the last day of the period for which he/she has claimed earnings in that currency

[intelinside]

Let me explain it to you:

Say your claim period is from 1st June 2007 to 31st May 2008, then in this case you will take the Exchange Rate of the last date of your claimed period. For this claim period, 1st June 2007 - 31st May 2008, you will need to take exchange rate on this last date, that is, 31st May 2008 to calculate your previous earnings.

I hope this helps.

Regards

[vijaymaghnani]

Thanks intelinside, your reply realy clear my point.

For EARNING let say i am claiming for the period from 1st June 2007 to 31st May 2008. But my salary of May credited on 23rd May 2008 not 31st May becuase we get salary on 23rd of every month.. should i take rate of 23rd or 31st May?

And how to take Exchange rate for Maintenanace fund, let say i want to apply on 15th June and get statement of account on 14th June..should the exchange rate be on 14th or 15th...


Vijay Kumar

[sikander]

In your cases, the dates for exchange rate should be
1. 31/05/2008 for previous earnings
2. Date of Statement for maitenance Funds.

[vijaymaghnani]

Let say if some one takes Exchange Rate of WRONG DATE , say in my case i take rate of 20May2008...

Will the assessing officer ignore it and do calculation at their own? Or will they Reject my Application?...

I think they will recalculate equivalent GBP from the rate sheet...


Vijay

[rajesh9pl]

They will not reject application for selecting exchange rate of different date. If exchange rates have not fluctuated considerably then a different exchange won't make any difference, provided you are not on threeshold of an income band. Same applies to Maintenance Funds.

Just chill!

[intelinside]

Let say if some one takes Exchange Rate of WRONG DATE , say in my case i take rate of 20May2008...

Will the assessing officer ignore it and do calculation at their own? Or will they Reject my Application?...

I think they will recalculate equivalent GBP from the rate sheet...


Vijay

Yes, they won't reject your application and will recalculate but this might deprive you of some vital points ! So, to be on safe side and as per their recommendations, use:

1) Take rate on last date of your claimed period for previous earnings
2) Take rate on last date of your bank statment and apply that rate to each and everyday (90 days) balance in your account prior to date of application to show that it always has balance above 2800 GBP. It is also worth mentioning here that your bank statement MUST NOT be older than 7 days !

Regards,

[vijaymaghnani]

Thanks Rajesh
Thanks intelinside

Vijay Kumar