The Lok Sabha was adjourned sine die after the passage of the Finance Bill, 2020 without any debate due to the situation arising out of the COVID-19 pandemic.
A Finance Bill is a bill ordinarily introduced each year to give effect to the financial proposals of the Government for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.
The Finance Bill is introduced in the Lok Sabha immediately after the presentation of the annual budget, as directed by Article 110 (a) of the Constitution of India.
The Finance Bill becomes the Finance Act for the year concerned after it is passed by the parliament and receives assent of the President.
A Budget usually contains tax proposals for the upcoming financial year. The proposed changes pertain to existing laws dealing with various taxes in the country.
The Finance Bill makes required amendments to the tax laws concerned, thus obviating the need to bring out a separate amendment law in each case. It does so by over-riding provisions in the existing laws.
Finance Bills can be divided into three categories, viz. Finance bill category I, Finance bill category II and Money Bill.
Finance bills category I and II contain provisions on taxation and expenditure.O
n the other hand, a Bill may be deemed as a Money Bill only if it has provisions pertaining to Consolidated Fund of India and results in imposition, abolition or alteration of central or state taxes.
Source : Economic Times