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Finance bill vs finace act vs budget

sssvkSridharan R. (CA (Final) Salem. Tamilnadu. sssvksridhar@yahoo.co.in) (218 Points)

24 September 2011

Dear Colleagues,

Can anyone tell me:

- What Finance Bill means

- The procedures to be followed by the legislatures to make and to pass Finance Bill

- What Finance Act means

- The procedures to be followed by the legislatures to make and to pass Finance Act

- What Union Budget means

- Difference between Finance Bill, Finance Act and Union Budget

- Any other things you may think it to be useful here to tell me

I need clear picture of the above Terms. Help me.

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6 Replies

Amit Gupta (Loosening Myself) (1508 Points)
Replied 24 September 2011

Union budget is a kind of meeting of members of parliament wherein finance bill (which contails all the proposed changes in current laws or any additional law to be proposed) is presented for approval ..Once it get appproved by President it becomes finance act.And the changes so approved become enforcbable

1 Like

sssvkSridharan R. (CA (Final) Salem. Tamilnadu. sssvksridhar@yahoo.co.in) (218 Points)
Replied 24 September 2011

Sridhar to Amit Gupta,

Thanks for your information, Amit Gupta.

sssvkSridharan R. (CA (Final) Salem. Tamilnadu. sssvksridhar@yahoo.co.in) (218 Points)
Replied 24 September 2011

Can any law, whatever it may be, be enacted by Finance Act or some few laws like Income Tax Act, etc be enacted by Finace Act? Can a Finance Act be changed by an other Finance Act? How Finace Act 2004 was passed and Finance Act (2) 2004 was passed?

Amit Gupta (Loosening Myself) (1508 Points)
Replied 26 September 2011

Yes...finance act can enforce any specific tax also.As service tax was impose by FInance Act 1994..

Hari Krishan (CS-Intern) (36 Points)
Replied 27 September 2011

The question contains 3 imp. points i.e.

-Budget

-finance bill

-finance act

>Budget is a term used in economics, simply speaking "A list of planned expenditure & revenue", Govt. of India every year presents its estimation of Expenditure & revenue in the parliament.

ANNUAL FINANCIAL STATEMENT Hereinafter for the sake of conveniance refered to as "AFS" is the official name of Budget as provided in article-112 of the constitution.

{here in my biased opinion all professionals must call BUDGET as ANNUAL FINANCIAL STATEMENT }

>finance bill is one of the most imp. document of AFS providing provision for levy & collection of tax(s). It is called as Bill until it is passed by the parliament.

> finance act means finance bill passed by the parliament. the provisional collection of taxes act provides that all proposals regarding indirect taxes shall have effect from the midnight of presentation of finance bill. due to the provisional collection of taxes act a finance bill becomes act with 70 days of its presentation in the parlaiment.

Please correct me if i am wrong.

mail me @

harikrishan0077 @ gmail.com

hari krishan

CS-FINAL

1 Like

sssvkSridharan R. (CA (Final) Salem. Tamilnadu. sssvksridhar@yahoo.co.in) (218 Points)
Replied 18 November 2011

Part of answer found latter:

Part of the main quesion of this part: Can a Finance Act be changed by an other Finance Act?

The answer is "Yes". Please see Chapter V of Finace Act, 2011 which is to amend the various provisons of the Finance Act, 1994. (The Service Tax Act is nothing but Chapter V of Finance Act, 1994).