Leave Encashment As Earnings

[webmarketingguru]

Hello All,

I had en-cashed my paid leaves last month and was wondering if this will be considered as part of my earnings? Please advise..

Regards,

[gd_Shepherd]

Not sure. Does it reflect in the salary slip?

Shepherd

[webmarketingguru]

Not sure. Does it reflect in the salary slip?

Shepherd

Yes, it is mentioned in my Payslip as "Leave Encashment" under "Earnings".

[destiniation_london]

I think you should be fine in claiming this as part of earnings.
I know one of my friend who applied from Australia with holiday en-cashment and he did not face any problem.

But, still you are better off mentioning this in your cover letter.
Also, just to be on the safer side, make sure you have enough points to qualify even if case worker decides not to give you points for this earnings.

[prisat]

Not sure. Does it reflect in the salary slip?

Shepherd

Yes, it is mentioned in my Payslip as "Leave Encashment" under "Earnings".

Was that taxed ??

[prisat]

Note : Encashment similars Reimbursement...

[puneetdwd]

Hi,
I had leave encashemnt showing in my bank statement, after tax deduction. I claimed it as salary and its is fine to do so.
Just mention that in your cover letter.
All the best

[webmarketingguru]

Thanks for your inputs.

I checked with our HR and they said that it is taxable earning (it reflects in the "deductions" section of my salary slip under "Income tax"). I am assuming that if I mention this clearly in the cover letter, then it should be fine...

Also, can you please clarify the following as well - My salary slip includes the following under "earnings" along with Basic, HRA, Transport and Special Allowance.

Medical Allowance
Telephone Expenses
Food Coupons
Office Wear
(Note: We usually submit bills on every quarter for these)

Our HR says payment made for these will be exempted from the tax - however they are paid from my own CTC (I mean this is NOT paid as extra to me, BUT as part of my own salary to avoid tax). My concern is will these earnings be rejected as earnings? Please advise...

This forum really so helpful!

[webmarketingguru]

Dear Members,

I did some search and read in other similar threads that allowances will not be considered as earnings...Can some senior members can clarify which of the following will be considered as earnings (and which are NOT) by looking at the breakup of my payslip below please...

Under "Earnings":

BASIC
House Rent Allowance
Transport Allowance
Medical Allowance
Telephone Expenses
Food Coupons
Office Wear
Special Allowance
Leave Encashment

Note: All earnings mentioned above are part of my CTC.

Under Deductions:

Provident Fund
Professional Tax
Food Deduction
Food Coupons Deductions
Income Tax

Let me know if you need clarifications on anything else. Looking forward to hear from ya...

Thanks.

P.S. Do you think i should post my new query as a separate thread? so that it gets attention...[/b]

[Sushil-ACCA]

Dear Members,

I did some search and read in other similar threads that allowances will not be considered as earnings...Can some senior members can clarify which of the following will be considered as earnings (and which are NOT) by looking at the breakup of my payslip below please...

Under "Earnings":

BASIC -YES
House Rent Allowance -NO
Transport Allowance -NO
Medical Allowance-NO
Telephone Expenses-NO
Food Coupons-NO
Office Wear-NO
Special Allowance-NO
Leave Encashment-YES

Note: All earnings mentioned above are part of my CTC.

Under Deductions:

Provident Fund
Professional Tax
Food Deduction
Food Coupons Deductions
Income Tax

Let me know if you need clarifications on anything else. Looking forward to hear from ya...

Thanks.

P.S. Do you think i should post my new query as a separate thread? so that it gets attention...[/b]

[webmarketingguru]

Thanks much for your reply Sushil-ACCA.

Will you be kind enough to clarify the following as well please

1) Does it mean the earnings that are exempted from the tax will NOT be considered? Or, in other words anything Gross taxable earnings will be considered.

2) Can i submit a consolidated letter of my Earnings from my Accounts department as proof, which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? I am asking this because if I exclude the HRA, I am falling short of the required amount to get qualified... Can you please share a sample format that I can check with my accounts? Are there any other options for me to show HRA as my earnings?

Will look forward to your response and inputs.

Thanks again.

[Sushil-ACCA]

Thanks much for your reply Sushil-ACCA.

Will you be kind enough to clarify the following as well please

1) Does it mean the earnings that are exempted from the tax will NOT be considered? Or, in other words anything Gross taxable earnings will be considered.

2) Can i submit a consolidated letter of my Earnings from my Accounts department as proof, which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? I am asking this because if I exclude the HRA, I am falling short of the required amount to get qualified... Can you please share a sample format that I can check with my accounts? Are there any other options for me to show HRA as my earnings?

Will look forward to your response and inputs.

Thanks again.

YOU CAN SHOW tax return on employment earning and supported by tax authority letter for confirmation of same

[prisat]

Thanks for your inputs.

I checked with our HR and they said that it is taxable earning (it reflects in the "deductions" section of my salary slip under "Income tax"). I am assuming that if I mention this clearly in the cover letter, then it should be fine...

Also, can you please clarify the following as well - My salary slip includes the following under "earnings" along with Basic, HRA, Transport and Special Allowance.

Medical Allowance
Telephone Expenses
Food Coupons
Office Wear
(Note: We usually submit bills on every quarter for these)

Our HR says payment made for these will be exempted from the tax - however they are paid from my own CTC (I mean this is NOT paid as extra to me, BUT as part of my own salary to avoid tax). My concern is will these earnings be rejected as earnings? Please advise...

This forum really so helpful!

I think you are good to go.... if iam not wrong, for leave encashment, companies usually pay basic salary of one day for each day of encashment....

[webmarketingguru]

Thanks much for your reply Sushil-ACCA.

Will you be kind enough to clarify the following as well please

1) Does it mean the earnings that are exempted from the tax will NOT be considered? Or, in other words anything Gross taxable earnings will be considered.

2) Can i submit a consolidated letter of my Earnings from my Accounts department as proof, which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? I am asking this because if I exclude the HRA, I am falling short of the required amount to get qualified... Can you please share a sample format that I can check with my accounts? Are there any other options for me to show HRA as my earnings?

Will look forward to your response and inputs.

Thanks again.

YOU CAN SHOW tax return on employment earning and supported by tax authority letter for confirmation of same

I am sorry to sound ignorant, but my question was can i submit a employer letter which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? This way I can include the HRA as earning...

The IT returns letter may show that HRA is exempted from the tax and therefore I cannot claim it...

I hope I am clear with my query?

[gd_Shepherd]

Same topic is running in another thread.

http://immigrationboards.com/viewtopic.php?t=61638

Shepherd

[webmarketingguru]

Same topic is running in another thread.

http://immigrationboards.com/viewtopic.php?t=61638

Shepherd

Thanks for sharing the link Shepherd. So, from what it says I understand that I can submit the Salary Statement Letter from my Employer along with the Bank statement as proof.

So, can you please comment on my actual query i.e. if i can submit the employer letter which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? This way I can include the HRA as earning...

Please advice.

[gd_Shepherd]

So, can you please comment on my actual query i.e. if i can submit the employer letter which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? This way I can include the HRA as earning...

Employer letter stating Gross Earnings and Net Earnings for each month should do. You should claim earning points over Gross earnings. For more details refer to Policy guidance. Additionally bank statements for the earning period is also required to complete the proof.

Shepherd

[webmarketingguru]

So, can you please comment on my actual query i.e. if i can submit the employer letter which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? This way I can include the HRA as earning...

Employer letter stating Gross Earnings and Net Earnings for each month should do. You should claim earning points over Gross earnings. For more details refer to Policy guidance. Additionally bank statements for the earning period is also required to complete the proof.

Shepherd

Thanks for the reply Shepherd. I checked for the sample template in the sticky section and found this one... Is it okay to use?

http://img136.imageshack.us/img136/928/ ... letter.png

[gd_Shepherd]

Looks good. You can get it printed on company letterhead.

Shepherd

[prisat]

Thanks much for your reply Sushil-ACCA.

Will you be kind enough to clarify the following as well please

1) Does it mean the earnings that are exempted from the tax will NOT be considered? Or, in other words anything Gross taxable earnings will be considered.

2) Can i submit a consolidated letter of my Earnings from my Accounts department as proof, which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? I am asking this because if I exclude the HRA, I am falling short of the required amount to get qualified... Can you please share a sample format that I can check with my accounts? Are there any other options for me to show HRA as my earnings?

Will look forward to your response and inputs.

Thanks again.

YOU CAN SHOW tax return on employment earning and supported by tax authority letter for confirmation of same

I am sorry to sound ignorant, but my question was can i submit a employer letter which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? This way I can include the HRA as earning...

The IT returns letter may show that HRA is exempted from the tax and therefore I cannot claim it...

I hope I am clear with my query?

I had the very same query when i applied. But absolutely no issues. Just submit ur Form 16. It has all details

Gross Income
Net taxable income (after all deductions)

Form 16 will have details clearly mentioned. So, don't worry about it. A educated person who in the place of making entry clearance decision and goes through the ITR Saral would / should know that figures mentioned in the ITR slip is after all deductions in respective sections.

As a matter of fact, nobody replied to my query earlier

[webmarketingguru]

Looks good. You can get it printed on company letterhead.

Shepherd

Thanks for confirming Shepherd.

[webmarketingguru]

Thanks much for your reply Sushil-ACCA.

Will you be kind enough to clarify the following as well please

1) Does it mean the earnings that are exempted from the tax will NOT be considered? Or, in other words anything Gross taxable earnings will be considered.

2) Can i submit a consolidated letter of my Earnings from my Accounts department as proof, which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? I am asking this because if I exclude the HRA, I am falling short of the required amount to get qualified... Can you please share a sample format that I can check with my accounts? Are there any other options for me to show HRA as my earnings?

Will look forward to your response and inputs.

Thanks again.

YOU CAN SHOW tax return on employment earning and supported by tax authority letter for confirmation of same

I am sorry to sound ignorant, but my question was can i submit a employer letter which will include the details of my Gross Earnings, Tax deducted and Net salary against each month (without getting into the details of allowances)? This way I can include the HRA as earning...

The IT returns letter may show that HRA is exempted from the tax and therefore I cannot claim it...

I hope I am clear with my query?

I had the very same query when i applied. But absolutely no issues. Just submit ur Form 16. It has all details

Gross Income
Net taxable income (after all deductions)

Form 16 will have details clearly mentioned. So, don't worry about it. A educated person who in the place of making entry clearance decision and goes through the ITR Saral would / should know that figures mentioned in the ITR slip is after all deductions in respective sections.

As a matter of fact, nobody replied to my query earlier

Thanks indianworld for the reply.

Can you please tell me what will be considered as earnings from the below (and define them if possible)

1) Gross Taxable Earnings before Exemptions
2) Net Salary
3) Net Taxable Salary
4) Gross Total Income (please define this)

Appreciate your inputs.

[webmarketingguru]

Hello Friends,

Trust you had a pleasant weekend!

Can you please tell me what will be considered as earnings from the below (and define them if possible)

1) Gross Taxable Earnings before Exemptions
2) Net Salary
3) Net Taxable Salary
4) Gross Total Income (please define this)

Appreciate your inputs.

[gd_Shepherd]

Can you please tell me what will be considered as earnings from the below (and define them if possible)

1) Gross Taxable Earnings before Exemptions
2) Net Salary
3) Net Taxable Salary
4) Gross Total Income (please define this)

Appreciate your inputs

Most payslips have two columns one on the left which when totalled (already done on the payslip) is what is considered as Gross earnings. Once deductions like PF, TDS and Misc. cuttings are done, you get the net salary. This is on the right side of the payslip.

You are getting confused between Net Salary and Net taxable salary (Net salary is not net taxable salary). I do not understand why you are worried about net taxable salary. Net salary is credited to your account(savings) and you can trace it back to the payslip thus fulfilling the criteria for earnings.

Have you gone through policy guidance? If you have, try going through it again. I am sure it will help you in interpreting more clearly.

Shepherd

[webmarketingguru]

Dear Shepherd,

Appreciate your reply. I am confused as what is actually considered as earnings by the Visa case worker - kindly advise on my specific query below

Most payslips have two columns one on the left which when totalled (already done on the payslip) is what is considered as Gross earnings. Once deductions like PF, TDS and Misc. cuttings are done, you get the net salary. This is on the right side of the payslip.

So you mean the left side earnings total (i.e. Gross earnings) is considered as the actual earnings? In my payslip left side, it includes House rent allowance, transport allowance, medial allowance etc along with Basic - so should I exclude them from total?

I hope your answer to this specific question should clear my confusion.