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Is it time to expand maternity leave for adoption of children across age groups?

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Women are entitled to maternity leave for adoption, only if the child is below three months of age at that time. This has posed several challenges to women who chose to adopt.


Natasha Sikdar*, an assistant professor at a Kolkata-based engineering college adopted a six-month-old girl child in 2020. She presumed that she would be entitled to maternity leave by her institute but was denied one citing the law.

"Since I had some reproductive issues and had reached the age of 36 years, I decided to go for adoption. The adoption process itself took more than a year and I really needed time off to spend with the baby. But my workplace refused leave since it is legally not mandatory," she added.

The Maternity Benefits (Amendment) Act states that 26 weeks of paid maternity leave will be available to all working women for pregnancy and child-birth.

However, when it comes to adoption the law states provides only 12 weeks of maternity leave from the time the child is handed over to them. This too is applicable only if the child is below the age of three months. Women adopting children above three months are not legally entitled to any leave.

Internationally, the leave laws are similar for adoption and maternity. For instance, the US allows for upto 12 weeks leave for maternity and adoption at companies with 50 or more employees. This is available for men and women.

In India, the absence of proper leaves for adoption of children above a certain age is a cause of concern. Organisations do not permit such adoption leaves, justifying their actions by saying that there is no legal provision for it.

Human resource heads, especially at mid-size and small companies, told Moneycontrol that it isn't feasible to offer long adoption paid leaves.

"Paid maternity leave of 26 weeks for upto two pregnancies for women employees is itself a costly proposition. If you add adoption leaves to it, this wouldn't be sustainable," said the head of human resources at a Mumbai-based insurance broking firm.

He added that this would in fact be counter-productive and could lead to companies consciously avoiding the recruitment of female staff of a certain age group.

For women, not having access to leaves post adoption can often be a nightmare.

Sanchita Mukherjee*, who is a senior investment professional at a Mumbai-based bank told Moneycontrol that when she adopted a 4-year-old boy in 2019, he took a lot of time to adjust to the surroundings.

"He had separation anxiety and would react aggressively whenever I stepped out to go to the office. It was very difficult for me and I needed atleast two to three months to be with him and care for him. That itself was denied to me citing law," said Mukherjee.

She finally decided to take a sabbatical in 2019 and now offers investment consulting services as a freelance professional.

Psychologists state that especially in cases of adoption, it is critical that the parents spend time with the child on a full-time basis atleast for the initial  few months.

Trisha Kamath, who is a Delhi-based child psychologist told Moneycontrol that adopted children who are left in the care of creches or nannies in the initial one to six months of adoption could see issues related to anxiety or attention issues.

"When you bring a child home, it is a new environment for him/her. They would look upto the parents for complete attention and care in the first few months so it is also crucial that the partners are able to give the child the time," she added.

But in the absence of defined leave in the law, corporates use this as a loophole to deny these facilities.

Danica Lobo*, a 30-year-old advertising professional in Mumbai had to switch three jobs in a two-year period in search of an organisation that would be accommodative towards an adoption.

"I would have to run around for documents, attend court hearings and meet multiple stakeholders for the initial adoption process in 2016. I finally adopted a one-year-old girl in 2018 but wasn't even granted a week's leave by my company. I quit that job and then quickly switched two companies in the hope of a 'flexible leave policy'. But I was denied even two days of work-from-home a month post adoption citing work pressure," he added.

For Lobo, Mukherjee, Sikdar and many other women who adopt a child after a lengthy legal process in India, the basic requirement is atleast a three-month leave that they can use to spend with the child.

When a 26 weeks leave facility is available for child-birth, why not start off with atleast 12 weeks of adoption leave irrespective of the age of the child?

*Names changed to protect identity

Budget 2021: How COVID-19 pandemic has stretched Income Tax Return last date since Budget 2020

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Amid coronavirus pandemic, the Income Tax (I-T) department had extended the return filing deadline three times. The July 31 due date was extended till November 30 in May 2020. Later it was again extended till December 31

The last date to file income tax returns (ITR) was on January 10 for the financial year 2019-20 (assessment year 2021-22).

Amid the coronavirus pandemic, the Income Tax (I-T) department extended the return filing deadline three times. The due date of July 31 was extended till November 30, 2020 and was again extended till December 31, 2020.

In view of the challenges faced by taxpayers, the I-T department has further extended the deadline by 10 days till January 10, 2021.

Those whose accounts are not required to be audited and those who usually file their return using ITR-1 and ITR-4 forms need to file ITR on January 10.

January expected to see record GST collection: Report

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After clocking record collections in December 2020 at Rs 1.15 lakh crore, the January 2021 GST collection is expected to be in the range of Rs 1.21-1.23 lakh crore and may still have an upside, SBI Research said in a noted on Thursday.GST | Representative Image

GST | Representative Image

With record GST collections expected in January at Rs 1.21-1.23 lakh crore, the shortfall in state GST can be narrowed to a minimal Rs 11,000 crore, according to a report.

Ongoing efforts to plug the leakages in GST collection has been bearing fruit since September.

It has helped the government borrow marginally less. As of January 22, it had borrowed Rs 11.46 lakh crore, and the remaining gross borrowing of Rs 1.6 lakh crore is expected as per the calendar year, taking the total gross borrowing to Rs 13.03 lakh crore, lower than Rs 13.10 lakh crore earlier.

The SGST collection for states is 12 per cent lower at Rs 1.87 lakh crore in April-December 2020 and the allocated IGST is 13 per cent lower at Rs 1.26 lakh crore.

The GST cess collection has stood at Rs 60,312 crore, 17 per cent lower than last year. The combined amount of SGST, allocated IGST and cess stands at Rs 3.73 lakh crore, which is 13 per cent lower but is equal to 58 per cent of their budgeted SGST of Rs 6.49 lakh crore.

If the Centre keeps 60 per cent of the IGST revenue, then the states could be staring at a shortfall of around Rs 67,000 crore.

After clocking record collections in December 2020 at Rs 1.15 lakh crore, the January 2021 GST collection is expected to be in the range of Rs 1.21-1.23 lakh crore and may still have an upside, SBI Research said in a noted on Thursday.

If 50 per cent of the IGST collected is disbursed to the states by March, then the state GST shortfall can narrow down to only a minimal Rs 11,000 crore after taking into account the full compensation cess, the report added.

Meanwhile, the government''s surplus cash balances have increased significantly recently to Rs 3.34 lakh crore as on January 28, from Rs 1.08 lakh crore in September 2020 and Rs 2.26 lakh crore in December.

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Petrol price at Rs 101.80 per litre in Rajasthan's Sri Ganganagar

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Across Rajasthan, the price of petrol is above Rs 93 and diesel more than Rs 85 per litre.Representative image (Source: Reuters)

The cost of premium petrol has reached Rs 101.80 per litre with a hike of 38 paise in Sri Ganganagar, Rajasthan. The petrol price has increased to reach Rs 93.86 per litre and diesel price to Rs 85.94 per litre in capital, Jaipur.

Across Rajasthan, the price of petrol is above Rs 93 and diesel more than Rs 85 per litre.

Prices of petrol and diesel across the country are market-determined and attract uniform central excise duty. But, their prices differ from state to state because of the wide variations in the local levies or value-added tax (VAT).

The VAT on diesel prices is 28 percent whereas VAT on petrol was in access of 38 percent, according to an official notification released by the Rajasthan government in May 2020.

VAT ranges from 20 percent to 33 percent on petrol and 16 percent to 23 percent on diesel in the neigh bouring states. Petrol in Rajasthan is costlier by 8 to 10 rupees and diesel by 4 to 11 rupees than other states.

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Budget 2021: How Budget 2020 changed Income Tax filing in India

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Budget 2020 was also the longest budget speech by any finance minister that lasted for 160 minutes.

Finance minister Nirmala Sitharaman in budget 2020 had announced the launch of a new personal income tax regime which can help the middle-class save taxes and also scrapped dividend distribution tax (DDT) with a slew of measures to boost the Indian economy suffering from a slowdown.

Budget 2020 was also the longest budget speech by any finance minister that lasted for 160 minutes.

The FM has proposed a new slab structure wherein individuals can save taxes provided deductions and exemptions are not availed, an option has been provided to the taxpayer to pay tax as per existing slabs by availing deduction/exemptions.

Nirmala Sitharaman halves customs duty on import of newsprint, lightweight coated paper to 5 percent. The budget has provided an outlay of Rs 8,000 crore for quantum computing over five years to break into this technology. Customs duty increased on footwear and furniture.

Sitharaman said direct taxes are the lowest, simplest, and smoothest. FM also proposed a scheme to bring down litigation indirect taxation scheme; 4.83 lakh direct cases pending in various appellate forums. Vivad se Vishwas' scheme for direct taxpayers whose appeals are pending at various forums.

Registration of charity institutions to be made completely electronic, donations made to be pre-filled in IT return the form to claim exemptions for donations easily. 15th Finance Commission has cut state share of central taxes by one percentage point to 41 percent. Tax on Cooperative societies proposed to be reduced to 22 percent plus surcharge and cess, as against 30 percent at present.

Income Tax Act to be amended to enable faceless appeal. The budget proposes deferment of tax payment by employees on ESOPs from startups by five years. Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify the tax system and lower tax rates.

Finance Minister Nirmala Sitharaman said the government intends to remove all income tax exemptions in the long-run.

Individuals opting for taxation under new rates will not be entitled to exemption/deductions including under Section 80C and 80D, LTC, housing rent allowance, the deduction for entertainment allowance, professional tax, and interest on self-occupied/vacant property.

The 30 percent slab, which was stuck for nearly a decade at Rs. 10 lakh, has finally moved to Rs. 15 lakh – an increase of a whopping 50 percent under the new regime. Income up to Rs 5 lakh is now exempted from tax, and lower tax rates apply on income between Rs 5 lakh and 15 lakh if taxpayer don’t claim deductions.

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IMF projects impressive 11.5% growth rate for India in 2021

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China is next with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent).

The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic.

The International Monetary Fund's growth projections for India in its latest World Economic Outlook Update released on Tuesday reflected a strong rebound in the economy, which is estimated to have contracted by eight per cent in 2020 due to the pandemic. In its latest update, the IMF projected a 11.5 per cent growth rate for India in 2021. This makes India the only major economy of the world to register a double-digit growth in 2021, it said.

India's GDP to contract 8% in FY21: FICCI Survey

China is next with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent). Revising its figures, the IMF said that in 2020, the Indian economy is estimated to have contracted by eight per cent. China is the only major country which registered a positive growth rate of 2.3 per cent in 2020.

India's economy, the IMF said, is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent. With the latest projections, India regains the tag of the fastest developing economies of the world. 



Fuel prices rise again, petrol scales new record in Delhi

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In the month of January, petrol prices were hiked Rs 2.59 a litre and diesel by Rs 2.61 a litre in Delhi. On the other hand, in Mumbai, petrol prices jumped Rs 2.52 a litre and diesel by Rs 2.79 a litre

The retail price of petrol scaled a new high in Delhi on January 27 with oil marketing companies (OMCs) raising the prices by 25 paise a litre to Rs 86.30. Similarly, prices of diesel also increased by 25 paise to Rs 76.48 a litre.

In Mumbai, diesel prices touched a record high of Rs 83.30 a litre, while petrol was seen at Rs 92.86 a litre, up 27 paise and 24 paise, respectively. Diesel prices had touched an all-time high of Rs 81.94 a litre in Delhi on July 20, 2020.

So far, in the month of January, petrol prices were hiked Rs 2.59 a litre and diesel by Rs 2.61 a litre in Delhi. On the other hand, in Mumbai, petrol prices jumped Rs 2.52 a litre and diesel by Rs 2.79 a litre since January 1. It was on January 6 only that OMCs raised fuel prices after a gap of 29 days.

Though there were speculations of an excise duty cut, the government is yet to take a final call on this. The ministry of petroleum and natural gas had requested the finance ministry to cut taxes after prices started rising in the month of January. During the current financial year, taxes on petrol and diesel were raised by Rs 13 and Rs 16, respectively, in the form of special additional excise duty and road and infrastructure cess.



FDI in India rose by 13% in 2020, as inflows declined in major economies due to pandemic: UN

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Foreign Direct Investment into India rose by 13 per cent in 2020, boosted by interest in the digital sector, and while fund flows "declined most strongly" in major economies such as the UK, the US and Russia due to the COVID-19 pandemic, India and China bucked the trend, the UN has said.

An investment trends monitor issued by the United Nations Conference on Trade and Development (UNCTAD) on Sunday said that global foreign direct investment (FDI) collapsed in 2020 by 42 percent to an estimated $859 billion from $1.5 trillion in 2019.

Such a low level was last seen in the 1990s and is more than 30 per cent below the investment trough that followed the 2008-2009 global financial crisis.

The decline in FDI inflows was concentrated in developed countries, where fund flows fell by 69 percent to an estimated $229 billion.

However, FDI in India rose by 13 percent, boosted by investments in the digital sector.

"China was the world’s largest FDI recipient, with flows to the Asian giant rising by 4 percent to $163 billion. India, another major emerging economy, also recorded positive growth (13 percent), boosted by investments in the digital sector,” the report said.

It added that "in relative terms, FDI flows declined most strongly in the UK, Italy, Russia, Germany, Brazil and the US due to the dramatic impact of COVID-19. India and China bucked the trend”.

FDI in South Asia rose by 10 per cent to $65 billion.

India’s 13 percent rise in FDI saw the total foreign investments for 2020 touching $57 billion.

The report noted that acquisitions in India’s digital economy was the largest contributor to this rise.

Cross-border merger and acquisition (M&A) sales grew 83 percent to $27 billion, the report said, citing social networking giant Facebook’s acquisition of 9.9 percent stake in Reliance Jio platforms, via a new entity, Jaadhu Holdings LLC.

Similarly deals in the energy sector propped up M&A values in India, it said.

Further, India and Turkey are attracting record numbers of deals in information consulting and digital sectors, including e-commerce platforms, data processing services and digital payments.

Despite projections for the global economy to recover in 2021, the UNCTAD expects FDI flows to remain weak due to uncertainty over the evolution of the COVID-19 pandemic.

The organisation has projected a 5 percent to 10 percent FDI slide in 2021 in last year’s World Investment Report.

The effects of the pandemic on investment will linger, said James Zhan, Director of UNCTAD, investment division.

"Investors are likely to remain cautious in committing capital to new overseas productive assets,” Zhan said.

According to the report, the decline in FDI in 2020 was concentrated in developed countries, where flows plummeted by 69 percent to an estimated $229 billion.

Flows to North America declined by 46 percent to $166 billion, with cross-border mergers and acquisitions dropping by 43 percent.

Announced greenfield investment projects also fell by 29 percent and project finance deals tumbled by 2 percent.

Greenfield investment is a kind of FDI, in which the parent company creates a subsidiary in the host country and builds its operations from the ground up.

The United States recorded a 49 percent drop in FDI, falling to an estimated $134 billion.

The decline took place in wholesale trade, financial services and manufacturing.

Cross-border M&A sales of US assets to foreign investors fell by 41 per cent, mostly in the primary sector.

On the other side of the Atlantic Ocean, investment in Europe dried up as well.

In the United Kingdom, FDI fell to zero, and declines were recorded in other major recipients.

Looking ahead, the FDI trend is expected to remain weak in 2021.

Data on an announcement basis, an indicator of forward trends, provides a mixed picture and point at continued downward pressure.

Sharply lower greenfield project announcements (-35 percent in 2020) suggest a turnaround in industrial sectors.

Similarly, the 2020 decline in cross-border M&As (-10 per cent) was cushioned by higher values in the last part of the year.

Looking at M&A announcements, strong deal activity in technology and pharmaceutical industries is expected to push M&A-driven FDI flows higher.

For developing countries, the trends in greenfield and project finance announcements are a major concern, the report said.

Although overall FDI flows in developing economies appear relatively resilient, greenfield announcements fell by 46 percent and international project finance by 7 percent.

These investment types are crucial for productive capacity and infrastructure development and thus for sustainable recovery prospects.

Risks related to the latest wave of the pandemic, the pace of the roll-out of vaccination programmes and economic support packages, fragile macroeconomic situations in major emerging markets, and uncertainty about the global policy environment for investment will all continue to affect FDI in 2021," the report said.

The coronavirus has killed over 2.1 million people, along with over 99 million confirmed cases, across the world so far.


Unemployed supertankers are about to get junked on Asia’s beaches

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Covid-19 is destroying the market for supertankers that deliver about a fifth of the world’s crude oil. The result is likely to be booming trade on the beaches of Bangladesh, India and Pakistan, where obsolete ships go to get blow-torched and sold for scrap.

Last week, the 1,200-foot vessels plying the industry’s busiest trade route -- from the Middle East to Asia -- effectively had to subsidize the delivery of cargoes because of how large the surplus of ships has grown.

While the vessel glut has really been in place since when Covid-19 caused oil demand to collapse early last year, it has until recently been masked by a huge chunk of the fleet storing crude that was previously surplus to requirements. Now, with Saudi Arabia and other major producers keeping millions of barrels off the market, and consumption stronger, those stored cargoes are being snapped up again -- leaving the tankers unemployed.

“It is hard to imagine a set of circumstances that is more against tanker owners than the ones at the moment,” said Brian Gallagher, head of investor relations at Euronav NV, owner of the world’s third-largest fleet of supertankers. “When you have scrap prices at these levels that’s very attractive, it changes the dynamic for owners of older tonnage.”

That will see more of the vessels sent to the world’s scrapyards, according to multiple conversations with tanker-company executives, many of whom didn’t want to discuss publicly how challenging the market has become. Clarkson Research Services Ltd., a unit of the world’s largest shipbroker, expects about 2% of the fleet to get demolished in 2021, up from almost none for the past two years. Its forecast was made before the slump into negative rates.

The scrapping may not be enough to save the market in the coming months. The amount of oil being shipped at sea remains far below normal levels as OPEC and its allies continue to withhold huge volumes of production and vessels that were used as storage during the oil market’s mammoth 2020 glut are now coming back onto the market and looking for business.

More importantly, scrapping is typically seen as a tactic that stops the rot. It doesn’t usually drive a surge in rates. On Wednesday, daily earnings for supertankers sailing on the benchmark Middle East to China route were -$1,190, according to figures from the Baltic Exchange in London.

The Baltic’s numbers assume fixed costs for a vessel, which can be mitigated. For example fuel costs can vary and ships are able to slow down to limit their consumption. Several of the tanker owners said they were doing this when sailing back to the Middle East for cargoes.


Scrap Value
Clarksons Platou AS, a sister company of Clarkson Research, estimates that ship speeds could now be coming down by almost 25%.

A period of relatively high shipping rates meant the number of supertankers getting demolished stayed low over the past few years. There were just two very large crude carriers, or VLCCs, scrapped last year and four in 2019. That compares with a total of 44 across 2017 and 2018, according to Clarkson Research Services Ltd. It counts a total fleet of 823 VLCCs.

The current earnings malaise will force ships that are more than 15 years old to consider heading for the break-up yards of Asia, the executives said. Every five years a vessel has to undergo a special survey that costs millions of dollars, money that’s hard to find when vessels are making a loss.

The scrap value of a VLCC currently stands at $18.95 million, according to the most recent Clarkson Research data. That’s the highest since March 2018 and could offer a further incentive to scrap.

Even so, most owners don’t expect a recovery in earnings until the second half of the year, when expectations are that oil demand will start to snap back toward pre-coronavirus levels. That should result in more volumes of crude sailing across the world’s oceans.

Until then owners have little to cheer. Some reported as many as 15 ships being offered to pick up some cargoes in the Middle East. At the moment, oil that’s stored in tanks on land is being slowly worked off by refiners. That, combined with an ever greater number of tankers returning to the market after being used to store oil at sea, means any turnaround in the tanker market won’t come overnight.

“It’s a challenging background,” said Euronav’s Gallagher. “It feels like it’s going to be challenging for a while.”



Budget 2021: Govt may tweak customs duties on host of goods

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They said that while import duties could be hiked on over 20 products such as cut and polished diamonds, rubber goods, leather garments, telecom equipment and carpet, the customs duties could be removed on select raw materials (like wood in rough, swan wood and hard board) used for furniture manufacturing and copper concentrate.

The government may tweak customs duties in the Budget next week on several goods, including furniture raw materials, copper scrap, certain chemicals, telecom equipment and rubber products, to promote domestic manufacturing and exports, sources said.

They said that while import duties could be hiked on over 20 products such as cut and polished diamonds, rubber goods, leather garments, telecom equipment and carpet, the customs duties could be removed on select raw materials (like wood in rough, swan wood and hard board) used for furniture manufacturing and copper concentrate.

"Expensive raw materials impact India''s price competitiveness in the international market. The country''s exports of furniture is very low (about one per cent), while countries like China and Vietnam are major players in the sector," they added.

The government may also consider reducing customs duties on coal tar pitch, and copper scrap, while raising the levies on certain finished goods like refrigerator, washing machine and clothes dryer, one of the sources said.

The government is already taking steps to boost domestic manufacturing such as introduction of production-linked incentives scheme (PLI) for several sectors including air conditioners and LED lights.

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