Memorandum Explaining the Provisions in the Finance Bill

budget

Nirmala Sitharaman, Anurag Thakur, Budget 2021

Budget, Nirmala Sitharaman, FM, bAHI Khata, finance ministry

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	The Finance Bill is a Money Bill according to the definition in Article 110 of the Indian Constitution. The Finance Bill contains tax proposals of the government explaining new taxes, changes in rates of existing taxes. This Bill, which could be about expenditure, revenues, and government borrowings, is part of the Union Budget and submitted to Parliament for its approval. It is accompanied by the Memorandum Explaining the Provisions in the Finance Bill. As the name suggests, the memorandum explains the provisions of the changes proposed by the Finance Bill.</div>
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	The Finance Bill stipulates changes to the existing taxation structure as proposed by the finance minister in the Union Budget. The accompanying memorandum details all legal amendments required for the proposed changes. For example, Memorandum to the Finance Bill, 2019, included provisions related to direct taxes that sought to amend the Income Tax Act, 1961.</div>
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	Various proposals for amendments are organised under sub-heads in the memorandum. Sub-heads include amendment to tax rates, deepening and widening of tax base, strengthening anti-abuse measures promoting tax incentives, and more.</div>
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	Once approved by the Lok Sabha, the Finance Bill becomes the Finance Act.<br />
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	<a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2022-02/Memorandum.pdf" target="_blank"><strong>Read the&nbsp;Memorandum Explaining the Provisions in the Finance Bill 2022</strong></a></div>

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What is Memorandum Explaining the Provisions in the Finance Bill

When a piece of legislation is yet to be passed as a law by the Houses of Parliament, it is termed a Bill. A Finance Bill is a Bill that, as the name suggests, concerns the country&#39;s finances &mdash; it could be about taxes, government expenditures, government borrowings, revenues, etc. Since the Union Budget deals with these things, it is passed as a Finance Bill.<br />
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Rule 219 of the Rules of Procedure of Lok Sabha states: &lsquo;Finance Bill&rsquo; means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.<br />
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There are different kinds of Finance Bills &mdash; the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110. A Money Bill is certified by the Speaker as such &mdash; in other words, only those Financial Bills that carry the Speaker&rsquo;s certification are Money Bills.<br />
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Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:<br />
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(a) the imposition, abolition, remission, alteration or regulation of any tax;<br />
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(b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;<br />
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(c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;<br />
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(d) the appropriation of moneys out of the consolidated Fund of India;<br />
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(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;<br />
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(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or<br />
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(g) any matter incidental to any of the matters specified in sub clause (a) to (f)<br />
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A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes<br />
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If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final<br />
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There shall be endorsement of every Money Bill when it is transmitted to the Council of States under Article 109, and when it is presented to the President for assent under Article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill.<br />
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<strong>Read full Finance Bill documents<br />
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<a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2022-02/Finance_Bill.pdf" target="_blank">Finance Bill 2022</a></strong>

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What is Finance Bill, Finance Bill Meaning, Finance Bill Definition

Finance Bill

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	Generally, the Finance Bill makes amendments to existing rules and laws regarding taxes, government expenditure, financial policy, etc. As a result, laws such as the Income-Tax Act, The Indian Stamp Act, UTI Act or FRBM Act, Securities Contracts Regulation Act, Forward Contracts Regulation Act, Foreign Exchange Management Act, Prevention of Money Laundering Act, etc, may be amended by the Finance Bill.</div>
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	Amendments made in Interim Budget 2019</div>
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	a) Clause 4 of the Finance Act amended section 23 of the Income-tax Act to allow taxpayers an option to claim &#39;nil&#39; annual income from any two houses declared as self-occupied, instead of one such house as was earlier applicable. It said that notional rent with regard to unsold inventory would not be charged to tax for up to two years, instead of one at present, from the end of the financial year in which the certificate of completion is obtained from a competent authority.</div>
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	b) Clause 22 of the Finance Act amended sub-section (3) of section 8 of the Prevention of Money-laundering Act, 2002, so as to extend the time limit of 90 days for which the attachment remains valid during the period of investigation to one year, excluding stays by any court.</div>
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What is Acts regulated by Finance Bill, Acts regulated by Finance Bill Meaning, Budget News, Acts regulated by Finance Bill

Acts regulated by the Finance Bill

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	The Union Budget not only contains the government&#39;s annual financial statement but also a road map for how the country&#39;s finances will be managed in the next financial year. As such, it is a piece of legislation that has to be vetted by Parliament. Usually, the Union Budget is presented a month or two before the end of the ongoing financial year and is effective from April 1 of the next financial year.</div>
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	Rule 219 of the Rules of Procedure of the Lok Sabha states: &lsquo;Finance Bill&rsquo; means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.</div>
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Learn what is meant by Effective date of Finance Bill,, Effective date of Finance Bill, definition and more Effective date of Finance Bill, news here at Business Standard.

Memorandum Explaining the Provisions in the Finance Bill

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