How is capital gains tax applied to bonus, rights offers, open offers and buybacks?And what do you do with capital losses? Here's a ready reckoner.
As the old adage goes, 'Nothing is certain but death and taxes'. If stock market investing has caught your fancy, here too, you cannot avoid the taxman. Whether you are busy making money or burning your fingers out in the markets, take time off to comprehend how tax laws treat the gains and losses on your investments.
Taxing language
'Long' and 'short' in the taxman's parlance have quite a different meaning than when used in the stock market context. To understand how the gains or losses we make on our stocks are taxed, we first need to get a grip on the distinction between long term and short term, in the tax context.
Shares are considered short-term assets if held for not more than twelve months. If the holding period exceeds twelve months, it is a long-term capital asset. Knowing this difference is important because the method of calculation of capital gains and the applicable tax rates vary under the two circumstances.
A capital gain is the excess of consideration received on transfer, over the cost of acquisition and incidental expenses. As a thumb rule, remember that for the assessment year 2009-10 (FY 2008-09), a short-term capital gain (STCG) from the transfer of shares is taxable at a flat rate of 15 per cent (excluding any surcharge/cess); long-term capital gain (LTCG) is exempt from tax. But this applies only when the transaction takes place through a recognised stock exchange and Securities Transaction Tax (STT) is paid.
Buybacks and open offers
What if the above conditions are not satisfied? This may happen in such circumstances as the sale of shares through off-market deals, buyback of shares by companies, and open offers or sale of shares of private companies.
Choppy market conditions, such as those that prevailed over the past year, have prompted many companies to announce buybacks. These companies may have bought back their shares held with you directly instead of routing it through the stock exchange. In that case, the tax treatment for LTCG and STCG varies.
Let's say Anuj holds 1,000 shares of a company, which he bought at Rs 50 per share in June 2008. The company offers to buy back the shares directly at Rs 65 in November 2008 and he accepts the offer. In this case, the difference of Rs 15,000 ( 1000*65 – 1000*50) will be treated as STCG in the hands of Anuj. Since this transaction was not routed through the stock exchange and Anuj did not pay STT, the gain will be added to Anuj's normal income under 'other' heads and taxed at his applicable slab rates.
Had Anuj bought these shares in June 2005 instead of June 2008, the holding period would have crossed 12 months by November 2008. Here, the LTCG , unlike in the previous case, is taxable. Income-tax law gives him an option in the method of calculation of gains.
He can choose to pay a tax of 20 per cent after indexation of his acquisition cost or pay a tax of 10 per cent without indexation, based on whichever is beneficial to him. With indexation, his cost would be 50,000 * 582/497 = Rs 58,551. (Cost of acquisition * Cost Inflation Index of the year of transfer / Cost Inflation Index of the year of purchase).
So, the gains would be Rs 65,000 – Rs 58,551 = Rs 6,449. Tax at 20 per cent will be Rs 1,290. Without indexation, the tax will be 10 per cent of Rs 15,000 = Rs 1,500. In this case, by opting for indexing his cost of acquisition, he saves on taxes.
When the acquirer of a company makes an open offer to you as a shareholder, you may be transferring your shares through an investment banker and may not pay STT. In that case too, you may have to shell out short term and long term capital gains tax at different rates than what would be applied to transactions made through the exchange.
Bonus, rights issues
Ashok holds 500 shares of a company, which he bought at Rs 20 per share. Let's assume he receives a 1:1 bonus from the company. Ashok now holds 1,000 shares altogether. Theoretically, his total cost of acquisition of Rs 10,000 (500 *20) is now spread over 1,000 shares @ Rs 10 per share.
However, according to tax laws, the cost of acquisition for bonus shares (although theoretically Rs 10 per share) is to be taken as 'nil' for the bonus shares. Cost of acquisition of the original lot will be the price at which he bought the shares initially.
Hence, in the sale of bonus shares, the entire consideration received will be taxed as STCG or as LTCG, as per the rules already discussed. To figure out whether the capital gains are short-term or long-term, the date of the receipt of the bonus is considered.
When transferring shares acquired through a rights issue, the cost of acquisition will be the amount actually paid to obtain the right. The holding period will be calculated from the date of allotment of the rights shares.
First in, first out
Say, you bought 100 shares of Maruti at Rs 725 in June 2008. When the stock price fell further, you bought another 50 shares at Rs 500 at end October 2008. Today, you sell 30 shares at Rs 480. What will be your cost of acquisition? Rs 725 or Rs 500? Enter FIFO — the first in, first out principle. Accordingly, these 30 shares will be considered sold from the lot that first entered your account — 100 shares @ Rs 725 per share.
FIFO also ensures that you do not have a choice with respect to selling your bonus shares first. When holding shares in dematerialised form, you cannot 'choose' to sell the bonus shares before your original lot.
When a sale happens after a bonus issue, the price of shares sold will be matched with your originally held lot to calculate capital gains; only then will the bonus lot (with nil acquired cost) be taken into account.
Well, with the kind of turbulence that the markets have witnessed for nearly a year now, many of us are looking not at the prospect of a capital gain, but at that of a loss. So what are your options?
Capital loss
Tax laws allow you greater leeway on short term losses, than on long term losses. If you have incurred a short-term capital loss, it can be set off against any STCG or LTCG.
If there is no STCG or LTCG in the current year, you can carry forward the loss for a period of eight assessment years immediately succeeding the current assessment year (2009-10), during which you have incurred the loss.
A long-term capital loss can be set off only against a LTCG or carried forward (for eight years).
If you have incurred a long-term loss on shares which, had it been a gain, would have been exempt from tax, then, this loss has to be ignored and can neither be set off nor carried forward. Otherwise, it can be set off or carried forward and set off against any taxable LTCG.
Another point to be noted here is that if you propose to carry forward loss under the head " capital gains", then you must file your return of income showing the loss within the due date for filing the return (July 31 for individuals). If you don't, you will forfeit your right to carry it forward.
Courtesy: Parvatha Vardhini C The Hindu Business Line
Friday 28 November 2008
Wednesday 26 November 2008
HOW GOOD IS YOUR VISITOR ETIQUETTE?
“Your manners are always under examination, and by committees little suspected, awarding or denying you very high prizes when you least think of it."
- Ralph Waldo Emerson
Well, the least suspected committee may well turn out to be your next employer and the prize, your ideal job! You never know. So, if you happen to travel a lot, hobnob with clients and visit other offices as part of your work schedule, ensure that your manners are impeccable and your visiting etiquette, intact.
So, how good is your visitor etiquette? Evaluate yourself by going through these simple but effective rules.
Be punctual and if you’re 5 minutes early, even better. This indicates that you respect other people’s time.
1. Don’t stroll into a place as if it’s your own.
2. Be polite to everyone you meet irrespective of if it’s the receptionist or the CEO.
3. If the office that you are visiting needs you to sign in, and take a visitor card, comply with the protocol. You could supply the receptionist with your visiting card.
4. While waiting, don’t try to chat up the receptionist, in case you’re feeling bored!
5. While waiting in someone’s office, don’t touch anything on his/her desk or around his/her room. Similarly, his/her reading material is his/her own, and is not there for you to kill time with.
6. Carry your own pens and note pads; it looks very unprofessional when you ask to borrow theirs.
7. Get your work done and leave. This is not a social visit so don’t grab every opportunity to chitchat.
8. On your way out, remember to thank the receptionist!
ENFORCING OFFICE EMAIL ETIQUETTEE
What is email etiquette? Well, here is a list of the top email etiquette rules you need to note.
1. Be concise and to the point.
Do not make an e-mail longer than it needs to be. Remember that reading an e-mail is harder than reading printed communications.
2. Answer all questions, and pre-empt further questions.
An email reply must answer all questions, and pre-empt further questions – If you do not answer all the questions in the original email, you will receive further e-mails regarding the unanswered questions, which will not only waste your time and your customer’s time but also cause considerable frustration.
3. Use proper spelling, grammar & punctuation.
This is not only important because improper spelling, grammar and punctuation give a bad impression of your company, it is also important for conveying the message properly. E-mails with no full stops or commas are difficult to read and can sometimes even change the meaning of the text.
4. Answer swiftly.
E-mails are sent as people wish to receive a quick response. Each e-mail should be replied to within at least 24 hours and preferably within the same working day.
5. Do not attach unnecessary files.
By sending large attachments you can annoy others and even bring down their e-mail system. Wherever possible try to compress attachments.
6. Use proper structure & layout.
Since reading from a screen is more difficult than reading from paper, the structure and lay out is very important for e-mail messages. Use short paragraphs and blank lines between each paragraph. When making points, number them or mark each point as separate to keep the overview.
7. Do not overuse the high priority option.
If you overuse the high priority option, it will lose its function when you really need it.
8. Do not write in CAPITALS.
IF YOU WRITE IN CAPITALS IT SEEMS AS IF YOU ARE SHOUTING. This can be highly annoying and might trigger an unwanted response in the form of a flame mail. Therefore, try not to send any email text in capitals.
9. Read the email before you send it.
A lot of people don’t bother to read an email before they send it out, as can be seen from the many spelling and grammar mistakes contained in emails. Apart from this, reading your email through the eyes of the recipient will help you send a more effective message and avoid misunderstandings and inappropriate comments.
10. Do not overuse Reply to All.
Only use Reply to All if you really need your message to be seen by each person who received the original message.
11. Do not use email to discuss confidential information.
Sending an email is like sending a postcard. If you don’t want your email to be displayed on a bulletin board, don’t send it. Moreover, never p make any libelous, sexist or racially discriminating comments in emails, even if they are meant to be a joke.
12. Use cc: field sparingly.
Try not to use the cc: field unless the recipient in the cc: field knows why they are receiving a copy of the message. Using the cc: field can be confusing since the recipients might not know who is supposed to act on the message.
WHEN TAKING UP A NEW JOB...
It could be your first job or your first day in a new environment, how would you behave, how would you like to dress? You got to remember whatever you do, all eyes will be on you.
Well here are few tips you can use to your benefit.
Get to work on time
While this might sound trivial, the fundamentals are that you should be at your desk and ready to work at the time your shift starts. While everyone understands that once in a while you could be caught in a traffic jam, just make sure you turning up late doesn’t turn into a habit.
Never under-dress
Ask around, check out what’s acceptable and not. While some offices demand a formal attire, casuals are acceptable in most offices nowadays. Your colleagues and co-workers shouldn’t feel that you have dressed too casually. Also keep yourself updated with the latest reforms in fashion for parties and weekends.
Try to keep your voice down
Most offices have cubicles as a work space; your sharing is always interesting for the other person, right? Wrong. The occasional laughing or cursing fits you throw can be extremely disruptive to your co-workers. Not only do they get enlightened with things they never wished, but also get disturbed in their normal routine.
Stay away from office gossips
There’s a fine line between polite conversations and downright nosiness. We guess you don’t want to get caught in the firing range of all the back stabbing and never ending office gossips. Staying away from all this will ensure you work with a proper frame of mind.
The office phone’s not a PCO
While most people blatantly use office phones calling everyone and anyone they know, it’s simply not right. Do limit your personal phone calls. There’s a difference in using the office phone in making an important appointment and calling your buddy and chatting for hours.
Leaving on time
It’s perfectly Ok to leave on time, simply don’t shut your computer down and sit by your desk waiting for the hour to strike. People notice these actions and it’s not appreciated. Make a point to leave after your scheduled time.
And if this is not your first ‘real’ job, and you are guilty of breeching any of the above tips, you definitely need a refresher course in office etiquette.
ARE YOU CONTRIBUTING TO OFFICE WOES?
Most people need a constant reminder that the workplace is not their personal apartment. So the next time you feel like making your presence known or felt, just watch the way you do it.
Here are few tips on how you can ensure no one feels you’re a pain at work.
Keep a tab on the volumes
While most workplaces allow their employees to listen to music as they work, make sure you’re humming or singing or choice of music doesn’t irritate the person next to you. A most common nuisance is the jarring volumes on your mobile phones. Set a pleasant ring tone on your mobile and at a level not too loud. Watch your volume even when you are thinking aloud or plainly rapping your fingers on your desk.
Watch those crumbs
After eating make it a point to clean up. Wipe up the crumbs and spills. Laying out paper napkins for your dining space will help in keeping the dining table clean. Don’t forget to put all wrappers and other wastes in the lunchroom garbage after you’ve finished. No one likes to eat in a dirty dining area.
Hygiene habits
make it a point to flush the toilet after use. Your crusade against water conservation should not result in others dying of stench. Simple things such as keeping the toilet floors clean, using the toilet bin go a long way in maintaining a clean and hygienic space.
Respect personal space
Don’t force your partner to draw enemy lines. Respect your colleagues’ space. Do not clutter. Put your personal stuff in drawers or cabinets. Also make it a habit of not peeping into your colleagues’ workspace. What they do is extremely confidential.
Whereabouts
leave a word about your whereabouts by jotting down or pinning a note to your desk. Leave a word where you are with those who need to know. Remember your colleague isn’t your secretary to take your messages.
OF HANDBAGS & BRIEFCASES
Ever been to lunch or a meeting, and wondered where to keep your handbag or briefcase?
Avoid fidgeting. Use these guidelines:
• At a meeting, place on the table only those writing materials, documents or folders that are essential. Samples, etc. can be produced at an appropriate time.
• At a social meal, nothing other than your food, your crockery and cutlery, and table decorations go n the table. If it’s a business meal, you may keep essential papers on the table, but remember this is not your office, and avoid a paper-spill over.
• Handbags and briefcases go on the floor, by the side of your chair. Cell-phones, which should either be shut off, or put in a silent/vibrator mode, should be in your bag or pocket, out of sight.
TIRED OF RUNNING ERRANDS FOR YOUR BOSS?
In an ideal workplace, the boss never asks a subordinate to do any personal work for him. Reality, however, is very different. Here’s how to deal with demanding bosses.
• If you are asked to do your boss’s personal chores and telling him outright that you can’t is beyond the limits of your courage, try putting it off and citing pressing office work as reason. Faced with this tactic a few times, even an insensitive person will take the hint.
• Another method is to tell him, in a casual manner—preferably away from the office environment, that official work doesn’t give you time to do any personal chores. He might not be thrilled about it, but a mixture of diplomacy and firmness should convince him.
• As a senior executive, don’t ask your juniors to run errands for you. You know they have a right to refuse, but you also know chances are they will not. Resentment doesn’t make for the best work environment!
GETTING YOUR FAX RIGHT
Yes, there is faxing etiquette as well, which is a very important aspect of business communication.
• When sending a fax, always include a cover sheet specifying whom the message is meant for.
• Type your message whenever possible. If you have to write it out, use capital letters.
• Corrections made using correction fluid show up as dark blotches, so make a photocopy, and use this to send the message.
• Many people receive their faxes on a computer, so make sure the paper is inserted the right side up. If it isn’t, the message can’t be read unless it’s printed out!
• Remember fax paper is expensive; don’t send out unnecessary or needlessly long messages. Also, call and check if the timing is convenient before sending out very long fax messages.
• Don’t fax personal or confidential messages unless you intend it to be office gossip. If such information has to be sent, do call ahead and inform the recipient so that he can personally retrieve it.
- Ralph Waldo Emerson
Well, the least suspected committee may well turn out to be your next employer and the prize, your ideal job! You never know. So, if you happen to travel a lot, hobnob with clients and visit other offices as part of your work schedule, ensure that your manners are impeccable and your visiting etiquette, intact.
So, how good is your visitor etiquette? Evaluate yourself by going through these simple but effective rules.
Be punctual and if you’re 5 minutes early, even better. This indicates that you respect other people’s time.
1. Don’t stroll into a place as if it’s your own.
2. Be polite to everyone you meet irrespective of if it’s the receptionist or the CEO.
3. If the office that you are visiting needs you to sign in, and take a visitor card, comply with the protocol. You could supply the receptionist with your visiting card.
4. While waiting, don’t try to chat up the receptionist, in case you’re feeling bored!
5. While waiting in someone’s office, don’t touch anything on his/her desk or around his/her room. Similarly, his/her reading material is his/her own, and is not there for you to kill time with.
6. Carry your own pens and note pads; it looks very unprofessional when you ask to borrow theirs.
7. Get your work done and leave. This is not a social visit so don’t grab every opportunity to chitchat.
8. On your way out, remember to thank the receptionist!
ENFORCING OFFICE EMAIL ETIQUETTEE
What is email etiquette? Well, here is a list of the top email etiquette rules you need to note.
1. Be concise and to the point.
Do not make an e-mail longer than it needs to be. Remember that reading an e-mail is harder than reading printed communications.
2. Answer all questions, and pre-empt further questions.
An email reply must answer all questions, and pre-empt further questions – If you do not answer all the questions in the original email, you will receive further e-mails regarding the unanswered questions, which will not only waste your time and your customer’s time but also cause considerable frustration.
3. Use proper spelling, grammar & punctuation.
This is not only important because improper spelling, grammar and punctuation give a bad impression of your company, it is also important for conveying the message properly. E-mails with no full stops or commas are difficult to read and can sometimes even change the meaning of the text.
4. Answer swiftly.
E-mails are sent as people wish to receive a quick response. Each e-mail should be replied to within at least 24 hours and preferably within the same working day.
5. Do not attach unnecessary files.
By sending large attachments you can annoy others and even bring down their e-mail system. Wherever possible try to compress attachments.
6. Use proper structure & layout.
Since reading from a screen is more difficult than reading from paper, the structure and lay out is very important for e-mail messages. Use short paragraphs and blank lines between each paragraph. When making points, number them or mark each point as separate to keep the overview.
7. Do not overuse the high priority option.
If you overuse the high priority option, it will lose its function when you really need it.
8. Do not write in CAPITALS.
IF YOU WRITE IN CAPITALS IT SEEMS AS IF YOU ARE SHOUTING. This can be highly annoying and might trigger an unwanted response in the form of a flame mail. Therefore, try not to send any email text in capitals.
9. Read the email before you send it.
A lot of people don’t bother to read an email before they send it out, as can be seen from the many spelling and grammar mistakes contained in emails. Apart from this, reading your email through the eyes of the recipient will help you send a more effective message and avoid misunderstandings and inappropriate comments.
10. Do not overuse Reply to All.
Only use Reply to All if you really need your message to be seen by each person who received the original message.
11. Do not use email to discuss confidential information.
Sending an email is like sending a postcard. If you don’t want your email to be displayed on a bulletin board, don’t send it. Moreover, never p make any libelous, sexist or racially discriminating comments in emails, even if they are meant to be a joke.
12. Use cc: field sparingly.
Try not to use the cc: field unless the recipient in the cc: field knows why they are receiving a copy of the message. Using the cc: field can be confusing since the recipients might not know who is supposed to act on the message.
WHEN TAKING UP A NEW JOB...
It could be your first job or your first day in a new environment, how would you behave, how would you like to dress? You got to remember whatever you do, all eyes will be on you.
Well here are few tips you can use to your benefit.
Get to work on time
While this might sound trivial, the fundamentals are that you should be at your desk and ready to work at the time your shift starts. While everyone understands that once in a while you could be caught in a traffic jam, just make sure you turning up late doesn’t turn into a habit.
Never under-dress
Ask around, check out what’s acceptable and not. While some offices demand a formal attire, casuals are acceptable in most offices nowadays. Your colleagues and co-workers shouldn’t feel that you have dressed too casually. Also keep yourself updated with the latest reforms in fashion for parties and weekends.
Try to keep your voice down
Most offices have cubicles as a work space; your sharing is always interesting for the other person, right? Wrong. The occasional laughing or cursing fits you throw can be extremely disruptive to your co-workers. Not only do they get enlightened with things they never wished, but also get disturbed in their normal routine.
Stay away from office gossips
There’s a fine line between polite conversations and downright nosiness. We guess you don’t want to get caught in the firing range of all the back stabbing and never ending office gossips. Staying away from all this will ensure you work with a proper frame of mind.
The office phone’s not a PCO
While most people blatantly use office phones calling everyone and anyone they know, it’s simply not right. Do limit your personal phone calls. There’s a difference in using the office phone in making an important appointment and calling your buddy and chatting for hours.
Leaving on time
It’s perfectly Ok to leave on time, simply don’t shut your computer down and sit by your desk waiting for the hour to strike. People notice these actions and it’s not appreciated. Make a point to leave after your scheduled time.
And if this is not your first ‘real’ job, and you are guilty of breeching any of the above tips, you definitely need a refresher course in office etiquette.
ARE YOU CONTRIBUTING TO OFFICE WOES?
Most people need a constant reminder that the workplace is not their personal apartment. So the next time you feel like making your presence known or felt, just watch the way you do it.
Here are few tips on how you can ensure no one feels you’re a pain at work.
Keep a tab on the volumes
While most workplaces allow their employees to listen to music as they work, make sure you’re humming or singing or choice of music doesn’t irritate the person next to you. A most common nuisance is the jarring volumes on your mobile phones. Set a pleasant ring tone on your mobile and at a level not too loud. Watch your volume even when you are thinking aloud or plainly rapping your fingers on your desk.
Watch those crumbs
After eating make it a point to clean up. Wipe up the crumbs and spills. Laying out paper napkins for your dining space will help in keeping the dining table clean. Don’t forget to put all wrappers and other wastes in the lunchroom garbage after you’ve finished. No one likes to eat in a dirty dining area.
Hygiene habits
make it a point to flush the toilet after use. Your crusade against water conservation should not result in others dying of stench. Simple things such as keeping the toilet floors clean, using the toilet bin go a long way in maintaining a clean and hygienic space.
Respect personal space
Don’t force your partner to draw enemy lines. Respect your colleagues’ space. Do not clutter. Put your personal stuff in drawers or cabinets. Also make it a habit of not peeping into your colleagues’ workspace. What they do is extremely confidential.
Whereabouts
leave a word about your whereabouts by jotting down or pinning a note to your desk. Leave a word where you are with those who need to know. Remember your colleague isn’t your secretary to take your messages.
OF HANDBAGS & BRIEFCASES
Ever been to lunch or a meeting, and wondered where to keep your handbag or briefcase?
Avoid fidgeting. Use these guidelines:
• At a meeting, place on the table only those writing materials, documents or folders that are essential. Samples, etc. can be produced at an appropriate time.
• At a social meal, nothing other than your food, your crockery and cutlery, and table decorations go n the table. If it’s a business meal, you may keep essential papers on the table, but remember this is not your office, and avoid a paper-spill over.
• Handbags and briefcases go on the floor, by the side of your chair. Cell-phones, which should either be shut off, or put in a silent/vibrator mode, should be in your bag or pocket, out of sight.
TIRED OF RUNNING ERRANDS FOR YOUR BOSS?
In an ideal workplace, the boss never asks a subordinate to do any personal work for him. Reality, however, is very different. Here’s how to deal with demanding bosses.
• If you are asked to do your boss’s personal chores and telling him outright that you can’t is beyond the limits of your courage, try putting it off and citing pressing office work as reason. Faced with this tactic a few times, even an insensitive person will take the hint.
• Another method is to tell him, in a casual manner—preferably away from the office environment, that official work doesn’t give you time to do any personal chores. He might not be thrilled about it, but a mixture of diplomacy and firmness should convince him.
• As a senior executive, don’t ask your juniors to run errands for you. You know they have a right to refuse, but you also know chances are they will not. Resentment doesn’t make for the best work environment!
GETTING YOUR FAX RIGHT
Yes, there is faxing etiquette as well, which is a very important aspect of business communication.
• When sending a fax, always include a cover sheet specifying whom the message is meant for.
• Type your message whenever possible. If you have to write it out, use capital letters.
• Corrections made using correction fluid show up as dark blotches, so make a photocopy, and use this to send the message.
• Many people receive their faxes on a computer, so make sure the paper is inserted the right side up. If it isn’t, the message can’t be read unless it’s printed out!
• Remember fax paper is expensive; don’t send out unnecessary or needlessly long messages. Also, call and check if the timing is convenient before sending out very long fax messages.
• Don’t fax personal or confidential messages unless you intend it to be office gossip. If such information has to be sent, do call ahead and inform the recipient so that he can personally retrieve it.
HOW GOOD IS YOUR VISITOR ETIQUETTE?
“Your manners are always under examination, and by committees little suspected, awarding or denying you very high prizes when you least think of it."
- Ralph Waldo Emerson
Well, the least suspected committee may well turn out to be your next employer and the prize, your ideal job! You never know. So, if you happen to travel a lot, hobnob with clients and visit other offices as part of your work schedule, ensure that your manners are impeccable and your visiting etiquette, intact.
So, how good is your visitor etiquette? Evaluate yourself by going through these simple but effective rules.
Be punctual and if you’re 5 minutes early, even better. This indicates that you respect other people’s time.
· Don’t stroll into a place as if it’s your own.
· Be polite to everyone you meet irrespective of if it’s the receptionist or the CEO.
· If the office that you are visiting needs you to sign in, and take a visitor card, comply with the protocol. You could supply the receptionist with your visiting card.
· While waiting, don’t try to chat up the receptionist, in case you’re feeling bored!
· While waiting in someone’s office, don’t touch anything on his/her desk or around his/her room. Similarly, his/her reading material is his/her own, and is not there for you to kill time with.
· Carry your own pens and note pads; it looks very unprofessional when you ask to borrow theirs.
· Get your work done and leave. This is not a social visit so don’t grab every opportunity to chitchat.
· On your way out, remember to thank the receptionist!
ENFORCING OFFICE EMAIL ETIQUETTEE
What is email etiquette? Well, here is a list of the top email etiquette rules you need to note.
1. Be concise and to the point.
Do not make an e-mail longer than it needs to be. Remember that reading an e-mail is harder than reading printed communications.
2. Answer all questions, and pre-empt further questions.
An email reply must answer all questions, and pre-empt further questions – If you do not answer all the questions in the original email, you will receive further e-mails regarding the unanswered questions, which will not only waste your time and your customer’s time but also cause considerable frustration.
3. Use proper spelling, grammar & punctuation.
This is not only important because improper spelling, grammar and punctuation give a bad impression of your company, it is also important for conveying the message properly. E-mails with no full stops or commas are difficult to read and can sometimes even change the meaning of the text.
4. Answer swiftly.
E-mails are sent as people wish to receive a quick response. Each e-mail should be replied to within at least 24 hours and preferably within the same working day.
5. Do not attach unnecessary files.
By sending large attachments you can annoy others and even bring down their e-mail system. Wherever possible try to compress attachments.
6. Use proper structure & layout.
Since reading from a screen is more difficult than reading from paper, the structure and lay out is very important for e-mail messages. Use short paragraphs and blank lines between each paragraph. When making points, number them or mark each point as separate to keep the overview.
7. Do not overuse the high priority option.
If you overuse the high priority option, it will lose its function when you really need it.
8. Do not write in CAPITALS.
IF YOU WRITE IN CAPITALS IT SEEMS AS IF YOU ARE SHOUTING. This can be highly annoying and might trigger an unwanted response in the form of a flame mail. Therefore, try not to send any email text in capitals.
9. Read the email before you send it.
A lot of people don’t bother to read an email before they send it out, as can be seen from the many spelling and grammar mistakes contained in emails. Apart from this, reading your email through the eyes of the recipient will help you send a more effective message and avoid misunderstandings and inappropriate comments.
10. Do not overuse Reply to All.
Only use Reply to All if you really need your message to be seen by each person who received the original message.
11. Do not use email to discuss confidential information.
Sending an email is like sending a postcard. If you don’t want your email to be displayed on a bulletin board, don’t send it. Moreover, never p make any libelous, sexist or racially discriminating comments in emails, even if they are meant to be a joke.
12. Use cc: field sparingly.
Try not to use the cc: field unless the recipient in the cc: field knows why they are receiving a copy of the message. Using the cc: field can be confusing since the recipients might not know who is supposed to act on the message.
WHEN TAKING UP A NEW JOB...
It could be your first job or your first day in a new environment, how would you behave, how would you like to dress? You got to remember whatever you do, all eyes will be on you.
Well here are few tips you can use to your benefit.
Get to work on time
While this might sound trivial, the fundamentals are that you should be at your desk and ready to work at the time your shift starts. While everyone understands that once in a while you could be caught in a traffic jam, just make sure you turning up late doesn’t turn into a habit.
Never under-dress
Ask around, check out what’s acceptable and not. While some offices demand a formal attire, casuals are acceptable in most offices nowadays. Your colleagues and co-workers shouldn’t feel that you have dressed too casually. Also keep yourself updated with the latest reforms in fashion for parties and weekends.
Try to keep your voice down
Most offices have cubicles as a work space; your sharing is always interesting for the other person, right? Wrong. The occasional laughing or cursing fits you throw can be extremely disruptive to your co-workers. Not only do they get enlightened with things they never wished, but also get disturbed in their normal routine.
Stay away from office gossips
There’s a fine line between polite conversations and downright nosiness. We guess you don’t want to get caught in the firing range of all the back stabbing and never ending office gossips. Staying away from all this will ensure you work with a proper frame of mind.
The office phone’s not a PCO
While most people blatantly use office phones calling everyone and anyone they know, it’s simply not right. Do limit your personal phone calls. There’s a difference in using the office phone in making an important appointment and calling your buddy and chatting for hours.
Leaving on time
It’s perfectly Ok to leave on time, simply don’t shut your computer down and sit by your desk waiting for the hour to strike. People notice these actions and it’s not appreciated. Make a point to leave after your scheduled time.
And if this is not your first ‘real’ job, and you are guilty of breeching any of the above tips, you definitely need a refresher course in office etiquette.
ARE YOU CONTRIBUTING TO OFFICE WOES?
Most people need a constant reminder that the workplace is not their personal apartment. So the next time you feel like making your presence known or felt, just watch the way you do it.
Here are few tips on how you can ensure no one feels you’re a pain at work.
Keep a tab on the volumes
While most workplaces allow their employees to listen to music as they work, make sure you’re humming or singing or choice of music doesn’t irritate the person next to you. A most common nuisance is the jarring volumes on your mobile phones. Set a pleasant ring tone on your mobile and at a level not too loud. Watch your volume even when you are thinking aloud or plainly rapping your fingers on your desk.
Watch those crumbs
After eating make it a point to clean up. Wipe up the crumbs and spills. Laying out paper napkins for your dining space will help in keeping the dining table clean. Don’t forget to put all wrappers and other wastes in the lunchroom garbage after you’ve finished. No one likes to eat in a dirty dining area.
Hygiene habits
make it a point to flush the toilet after use. Your crusade against water conservation should not result in others dying of stench. Simple things such as keeping the toilet floors clean, using the toilet bin go a long way in maintaining a clean and hygienic space.
Respect personal space
Don’t force your partner to draw enemy lines. Respect your colleagues’ space. Do not clutter. Put your personal stuff in drawers or cabinets. Also make it a habit of not peeping into your colleagues’ workspace. What they do is extremely confidential.
Whereabouts
leave a word about your whereabouts by jotting down or pinning a note to your desk. Leave a word where you are with those who need to know. Remember your colleague isn’t your secretary to take your messages.
Of Handbags & Briefcases
Ever been to lunch or a meeting, and wondered where to keep your handbag or briefcase?
Avoid fidgeting. Use these guidelines:
• At a meeting, place on the table only those writing materials, documents or folders that are essential. Samples, etc. can be produced at an appropriate time.
• At a social meal, nothing other than your food, your crockery and cutlery, and table decorations go n the table. If it’s a business meal, you may keep essential papers on the table, but remember this is not your office, and avoid a paper-spill over.
• Handbags and briefcases go on the floor, by the side of your chair. Cell-phones, which should either be shut off, or put in a silent/vibrator mode, should be in your bag or pocket, out of sight.
Tired Of Running Errands For Your Boss?
In an ideal workplace, the boss never asks a subordinate to do any personal work for him. Reality, however, is very different. Here’s how to deal with demanding bosses.
• If you are asked to do your boss’s personal chores and telling him outright that you can’t is beyond the limits of your courage, try putting it off and citing pressing office work as reason. Faced with this tactic a few times, even an insensitive person will take the hint.
• Another method is to tell him, in a casual manner—preferably away from the office environment, that official work doesn’t give you time to do any personal chores. He might not be thrilled about it, but a mixture of diplomacy and firmness should convince him.
• As a senior executive, don’t ask your juniors to run errands for you. You know they have a right to refuse, but you also know chances are they will not. Resentment doesn’t make for the best work environment!
Getting Your Fax Right
Yes, there is faxing etiquette as well, which is a very important aspect of business communication.
• When sending a fax, always include a cover sheet specifying whom the message is meant for.
• Type your message whenever possible. If you have to write it out, use capital letters.
• Corrections made using correction fluid show up as dark blotches, so make a photocopy, and use this to send the message.
• Many people receive their faxes on a computer, so make sure the paper is inserted the right side up. If it isn’t, the message can’t be read unless it’s printed out!
• Remember fax paper is expensive; don’t send out unnecessary or needlessly long messages. Also, call and check if the timing is convenient before sending out very long fax messages.
• Don’t fax personal or confidential messages unless you intend it to be office gossip. If such information has to be sent, do call ahead and inform the recipient so that he can personally retrieve it.
Tuesday 2 September 2008
Where is the Gold?
Over the past fortnight, we have seen a sharp fall in gold prices. This fall in price has stimulated demand for gold from consumers and investors across the globe. After a year of dull demand for gold, the sharp fall in prices provided a golden opportunity for consumers and investors waiting on the sidelines to buy gold. This spurt in demand shows that consumers and investors believe that gold is attractively priced at current levels (approx. Rs. 11,500 per 10 grams).
The past few days have been very busy for gold market traders and for employees at the gold vaults. Demand has been strong and widespread, with gold markets in the Middle East, Europe and Asia witnessing strong demand. The strongest demand continues to come from the Indian markets. This has once again reinforced the belief that there will continue to be increased demand for gold from consumers/investors in India. Gold refiners on the other hand have been literally struggling to meet the increased demand for gold.
Demand for gold in India has been so huge that despite a sharp increase in gold imports over the past fortnight, there has been acute shortage of physical gold in the market. Premiums charged by wholesale suppliers and banks have increased to abnormal levels, way beyond what has been seen in the past. What does this indicate? Is this a one-off scenario where refiners and suppliers couldn’t match the unexpected increase in gold demand i.e. they weren’t ready for it? or will there be continued supply constraints for a longer period of time?
The second scenario looks more likely.
An analysis of trends in the three main supply sources for gold (Gold Mines, Central Banks and Scrap Gold), will help to throw more light on this.
Supply of physical gold from mines has been virtually stagnant since the beginning of the decade. There has not been any major discovery of new gold reserves over the past few years. The process of exploration and opening of new mines has become even more challenging due to environmental bottlenecks, manpower, equipment and power shortages.
Historically, Central Banks have been active influencers in the gold market. There have been many instances in the past wherein Central Banks have aggressively sold physical gold, leading to depressed gold prices. However, recent trends show that the reverse seems to be happening now. According to the World Gold Council, trends indicate that gold sales by signatories to the Central Bank Gold Agreement (CBGA), could be the lowest since the CBGA was signed in 1999. With only one month to go before the year end of September 2008, only about 319 tonnes of gold have been sold so far this year by the European central banks. This is against their maximum allowable annual (September 2008 end) sale quota of 500 tonnes. Central Banks worldwide are putting increased importance on gold reserves especially in these times of global economic turmoil. The global economy is going through a pretty traumatic period, and the Central Banks believe that having gold to back up t heir currency is a good idea.
Gold Scrap (typically old jewellery and jewellery manufacturing wastage) has been a major source of supply over the past year. At the prevailing attractive price levels, consumers would be reluctant to exchange old jewellery for new and would rather buy new gold jewellery. The increased demand and higher premiums for physical gold over the past fortnight also suggests that scrap supply has virtually vanished.
The demand in gold just doesn’t seem to be waning. It is increasing every day. Buyers who adore jewellery and those preparing for the upcoming marriage season are rushing in to buy gold. Investors want to buy more gold to protect their portfolio from rising inflation, economic uncertainity and unpredictable and volatile stock markets. Investors in India, have also increasingly preferred to buy gold through Gold Exchange Traded Funds. Globally, investors who buy gold for investment purposes have preferred buying gold exchange traded funds rather than buying physical gold coins or bars. This trend is catching on rapidly in India. This is primarily due to the many benefits that Gold Exchange Traded Funds offer including lower purchase cost, purity, security, transparency and tax efficiency.
It is increasingly clear, that demand for physical gold is set to go higher in the near term especially given the current attractive price levels. Supply of physical gold does not seem sufficient enough to satisfy the needs of hungry gold consumers. The fundamental question is - "Where is the gold supply going to come from?" Gold Mines are not producing enough, Central Banks are selling lesser gold, Scrap Gold is virtually not available. We are still ahead of the peak demand season and facing a supply crunch already. What would happen when demand accelerates during the festival/marriage season that will start from mid September onwards? Where is the gold going to come from to cater to the peak demand?
Buy some gold now before the demand supply mismatch leads gold to higher levels.
Buy Gold nowMonday 1 September 2008
Tips for Job Interview
Interviewing for a job is a very stressful and difficult process Here are nine secrets to consider.
1. Discover what you really want out of your work and life. Discover your true passions, desires, beliefs, and talents so that you can paint a picture of your true work and life goals, from your own perspective.
2. Develop and define the job you really want.That"s right! Design and define the job that will allow you to fulfill your passions, desires, and beliefs and maximize your talents. What you are doing is building your ideal job around what you want as opposed to looking at job opportunities that come along to evaluate. Believe it or not, your ideal job actually exits in more than one way and within the personal parameters you set.
3. Find out what companies have positions that meet your ideal position requirements. Look at and research all of the possible companies within the geographical area you designated to discover what positions within these companies you would want. Do not worry about whether they have job vacancies or are in a hiring mode.
4. Evaluate the companies that have your desired jobs. Make sure you would want to work for the companies that have your ideal jobs. They need to have integrity and treat their employees and customers in the manner you would want to be treated. Determine whether they operate in an industry that you want to work in.
5. Research the companies you selected.Once again, do not be put off or discouraged if the companies are not hiring. Why? Because companies are always looking for the right employees and will have to eventually hire new employees to survive. Determine who actually makes hiring decisions, and what is important to them. Many companies disguise this information through HR departments or hiring committees. If possible, try to find out how you can contact hiring decision-makers directly. Get their e-mail addresses, direct telephone numbers, or find someone in the company who can be a liaison for you.
6. Contact the decision-makers and tell them you want to work for them in the specific jobs you chose. Express your enthusiasm for that specific job or jobs. The fewer jobs you designate the better. You want them to know you can be trusted by truthfully exposing your commitment to seeking your dream job, even though they may not have an opening. You are, in essence, recruiting them to work in your dream job. Let them know that you will be very productive because you will excel at the job, and also that you will be a very grateful and energetic employee because you are doing what you love. You are not just asking for a job so they will pay you, but you have targeted a specific job at that company, and you are committed to contributing in that position.
7. Ask them if there are any special skills or qualifications you will need to be accepted in the position. If you do not have the sought-after skills and qualifications for the job, either find a way to get them beforehand or see if you can attain them within the company as an employee. This approach directs attention to what the employer wants and away from your resume compared to others" resumes. It will also show them your commitment to attaining that job. Stay in contact to alert employers of your new skills, qualifications, and continued interest.
8. If necessary, be willing to take an interim job. This way you can work on the required skills and qualifications, and you can obtain an income while you prepare for the job. You will also be in a better position to take your dream job when it becomes available.
9. Get support from somebody during the process. Some of the secret steps discussed above will probably appear to be daunting to you, which is to be expected. Enlist the help of another person to discuss all of the above steps and to map out the best strategy to get your ideal job. This person should be a trusted and strong supporter of your goal, as well as someone who will offer you another perspective to assist in the execution of your plan. Getting your ideal job is an extremely important objective, and it is worth enlisting the help of someone to actually get it.
Final Thoughts
Employers constantly face the problem of finding and surrounding themselves with the right employees who want to work for them, whom they can trust, and who will be very productive with the least amount of supervision. You will definitely get their attention, when you recruit employers for the specific job you chose, because of your honesty, your commitment, your enthusiasm, and your desire to produce for them. In fact, you may even appear to be too good to be true.
Many times the people who are filling the jobs that you want are not happy in the position. They are not producing or are causing other problems for the employers. Your request for employment for these specific jobs will give employers an option that they only dream about.
1. Discover what you really want out of your work and life. Discover your true passions, desires, beliefs, and talents so that you can paint a picture of your true work and life goals, from your own perspective.
2. Develop and define the job you really want.That"s right! Design and define the job that will allow you to fulfill your passions, desires, and beliefs and maximize your talents. What you are doing is building your ideal job around what you want as opposed to looking at job opportunities that come along to evaluate. Believe it or not, your ideal job actually exits in more than one way and within the personal parameters you set.
3. Find out what companies have positions that meet your ideal position requirements. Look at and research all of the possible companies within the geographical area you designated to discover what positions within these companies you would want. Do not worry about whether they have job vacancies or are in a hiring mode.
4. Evaluate the companies that have your desired jobs. Make sure you would want to work for the companies that have your ideal jobs. They need to have integrity and treat their employees and customers in the manner you would want to be treated. Determine whether they operate in an industry that you want to work in.
5. Research the companies you selected.Once again, do not be put off or discouraged if the companies are not hiring. Why? Because companies are always looking for the right employees and will have to eventually hire new employees to survive. Determine who actually makes hiring decisions, and what is important to them. Many companies disguise this information through HR departments or hiring committees. If possible, try to find out how you can contact hiring decision-makers directly. Get their e-mail addresses, direct telephone numbers, or find someone in the company who can be a liaison for you.
6. Contact the decision-makers and tell them you want to work for them in the specific jobs you chose. Express your enthusiasm for that specific job or jobs. The fewer jobs you designate the better. You want them to know you can be trusted by truthfully exposing your commitment to seeking your dream job, even though they may not have an opening. You are, in essence, recruiting them to work in your dream job. Let them know that you will be very productive because you will excel at the job, and also that you will be a very grateful and energetic employee because you are doing what you love. You are not just asking for a job so they will pay you, but you have targeted a specific job at that company, and you are committed to contributing in that position.
7. Ask them if there are any special skills or qualifications you will need to be accepted in the position. If you do not have the sought-after skills and qualifications for the job, either find a way to get them beforehand or see if you can attain them within the company as an employee. This approach directs attention to what the employer wants and away from your resume compared to others" resumes. It will also show them your commitment to attaining that job. Stay in contact to alert employers of your new skills, qualifications, and continued interest.
8. If necessary, be willing to take an interim job. This way you can work on the required skills and qualifications, and you can obtain an income while you prepare for the job. You will also be in a better position to take your dream job when it becomes available.
9. Get support from somebody during the process. Some of the secret steps discussed above will probably appear to be daunting to you, which is to be expected. Enlist the help of another person to discuss all of the above steps and to map out the best strategy to get your ideal job. This person should be a trusted and strong supporter of your goal, as well as someone who will offer you another perspective to assist in the execution of your plan. Getting your ideal job is an extremely important objective, and it is worth enlisting the help of someone to actually get it.
Final Thoughts
Employers constantly face the problem of finding and surrounding themselves with the right employees who want to work for them, whom they can trust, and who will be very productive with the least amount of supervision. You will definitely get their attention, when you recruit employers for the specific job you chose, because of your honesty, your commitment, your enthusiasm, and your desire to produce for them. In fact, you may even appear to be too good to be true.
Many times the people who are filling the jobs that you want are not happy in the position. They are not producing or are causing other problems for the employers. Your request for employment for these specific jobs will give employers an option that they only dream about.
Wednesday 9 July 2008
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