The cover on the components of a pay package(Salary Decoded, February 2013) was exhaustive. My employer is planning on converting my terms of employment from a ‘open-ended appointment letter’ to a‘fixed-term appointment letter’, which I realised upon reading the story.
　　Understanding the differences and the various components could help me understand how my salary structure will change and the allowances and reimbursements I can negotiate for.
　　JYOTISH K, Hyderabad
　　The story on lowering tax liability against investment losses (Turing Losses into Gains, February 2013) was an interesting read. However, I still have a a couple of questions. First, how can losses from bonds or debt mutual funds be used to save tax? Can we set off losses from debt mutual funds against profit made elsewhere? The story also does not say how losses from gold ETF and physical gold are treated. I believe gains (and losses) from gold ETF and physical gold are taxed differently.
　　VARUN ARORA, Chandigarh
　　Based on the holding period, losses (or gains) are categorised as long term or short term. For debt funds and gold ETFs, a holding period over one year is considered long term, while for physical gold it is three years. Long-term losses from any capital asset, as mentioned in the story, can be adjusted only against long-term gains, while short-term losses can be adjusted against both long-term and short-term gains.
　　The report on how royalty payments by Indian companies is to be viewed (Payment Blues, February 2013) was rather unique. It is an aspect of valuation of a stock that I have not heard of before. That royalty payments doubled between 2007-8 and 2011-12, including Maruti, Hindustan Unilever and Tata Communications, also makes it an important factor to consider.
　　VYSHAK NAMBIAR, Mumbai

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