let us understand our legislative system. Constitution of India is the supreme law of India. India has been further divided into 2 categories by constitution i.e. Central India (India as a whole) and Independent states (States). Parliament has been empowered with Central India i.e. Parliament can make laws for the whole of India or part of India. State legislative assembly (SLA) has been empowered with states i.e. SLA can make laws for the whole or any part of the state. One should notice that the law making authority is parliament at central level. Parliament is different from central Govt.(CG). CG means ruling party (BJP at present). Parliament means all parties (Ruling + Opposition). It is the duty of ruling party to present the matter before parliament and then parliament can make law on that matter. Parliament consists of two houses -
1. Council of states (Rajya sabha or Upper house).
2. House of people (Lok sabha or Lower house).
When a matter is presented before parliament, it is known as Bill (Bill means not legally enforceable). Bill when passed by both the houses of parliament and it receives the consent of President becomes law i.e. legally enforceable. There are two types of bills which can be presented before parliament as follows -
(a) - Money bill - Money bill means a bill which deals with Imposition of a new tax, alteration of an existing act (amendments) or abolition of an existing act. Therefore money bills deals with taxation.
Note - Money bill can only be originated before Lok sabha and thereafter it is sent to Rajya sabha.
(b) - Ordinary Bill - A bill other than money bill is known as Ordinary bill. (Like Lokpal bill of Anna hazare, Companies bill 2013).
Note - Ordinary bill can be placed before any of the house and thereafter sent to other house.
Finance bill is also a money bill because it contains various provisions related to Direct and Indirect tax. Every year Government sought to develop his economic plans and a Budget is presented every year. As the name suggests budget is intended for future actions of CG. CG is responsible towards people of India and Budget is the source through which people of India measures the plans of CG. Finance bill is a part of Budget. Budget has 2 parts - Expenditure and revenue.
Taxes being the revenue discussed under finance bill every year in Budget. Generally the budget comes on the last working day of February, However in the election year the budget is presented after the formation of new government and till then a interim budget is presented. Final budget is presented by new party after election.
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Tags Income Tax