{"id":6178,"date":"2015-06-02T23:50:56","date_gmt":"2015-06-02T18:20:56","guid":{"rendered":"http:\/\/lex-warrier.in\/?p=6178"},"modified":"2023-07-01T15:54:43","modified_gmt":"2023-07-01T15:54:43","slug":"presidential-nod-to-black-money-bill","status":"publish","type":"post","link":"https:\/\/lex-warrier.in\/archives\/presidential-nod-to-black-money-bill.html","title":{"rendered":"Presidential nod to Black Money Bill"},"content":{"rendered":"

The Undisclosed Foreign Income and Assets Bill, which had secured the Lok Sabha\u2019s approval during the Budget session of Parliament has been cleared by the Office of President of India. The Undisclosed Foreign Income and Assets Bill popularly called the black money Bill. Now Bill will be sent to Rajya Sabha for its consent. Since this Bill is notified as a Money Bill, Rajya Sabha does not have the power to reject the same. Now it is only a procedure to be complied with.<\/p>\n

Though it is yet to be notified, it is understood that, those with undisclosed income abroad will get a short compliance window to come clean by paying 30 per cent tax and 30 per cent penalty. After the expiry of said compliance window, anyone found to have undeclared wealth abroad will have to pay 30 per cent tax and 90 per cent penalty. Such offenders may also face criminal prosecution and shall be punishable with imprisonment of up to 10 years.<\/p>\n

Quick Reference<\/h2>\n

What is a Money Bill?<\/h3>\n

Under article 110(1) of the Constitution, a Bill is\u00a0deemed to be a Money Bill if it contains only provisions\u00a0dealing with all or any of the following matters, namely:<\/p>\n

    \n
  1. the imposition, abolition, remission, alterationor regulation of any tax;<\/li>\n
  2. the regulation of the borrowing of money orthe giving of any guarantee by the Government of India, or the amendment of the\u00a0law with respect to any financial obligations undertaken or to be undertaken by the Government of India;<\/li>\n
  3. the custody of the Consolidated Fund or theContingency Fund of India, the payment of moneys into or the withdrawal of moneys from\u00a0any such fund;<\/li>\n
  4. the appropriation of moneys out of the Consolidated Fund of India;<\/li>\n
  5. the declaring of any expenditure to beexpenditure charged on the Consolidated\u00a0Fund of India or the increasing of the amount\u00a0of any such expenditure;<\/li>\n
  6. the receipt of money on account of theConsolidated Fund of India or the public\u00a0account of India or the custody or issue of\u00a0such money or the audit of the accounts of the\u00a0Union or of a State; or<\/li>\n
  7. Anymatter incidental to any of the matters\u00a0specified in sub-clauses (a) to (f).<\/li>\n
  8. A Bill is not deemed to be Money Bill by reasononly that it provides for the imposition of fines or other\u00a0pecuniary penalties, or for the demand or payment of fees for\u00a0licenses\u00a0or fees for services rendered, or by\u00a0reason that it provides for the imposition, abolition,\u00a0remission, alteration or regulation of any tax by any\u00a0local authority or body for local purposes.<\/li>\n
  9. The term \u201cincidental\u201d in article 110(1)(g) of theConstitution has wide implications. It is comprehensive\u00a0enough to include not merely the rates, area and field of tax, but also complete machinery for assessment,\u00a0appeals, revisions, etc. It is in this light that Finance\u00a0Bills which, in addition to rates of taxation, contain\u00a0provisions regarding machinery for collection, etc. are\u00a0certified as Money Bills. Similarly, a Bill seeking to\u00a0amend or consolidate the law relating to Income-tax istreated as a Money Bill. Since such Bills substantially\u00a0aim at imposition, abolition, etc. of any tax, the\u00a0presence of other incidental provisions do not take them out of the category of Money Bills. Thus there\u00a0may be only one section in a Money Bill imposing a\u00a0tax and there may be several other sections which may\u00a0deal with the scope, method, manner, etc. of its<\/li>\n<\/ol>\n

    Certification of Money Bills<\/h3>\n
      \n
    1. A Money Bill can be introduced inLok\u00a0Sabha\u00a0 If any question arises whether a Bill is a Money\u00a0Bill or not, the decision of Speaker thereon is final. The\u00a0Speaker is under no obligation to consult any one in\u00a0coming to a decision or in giving his certificate that a\u00a0Bill is a Money Bill. The certificate of the Speaker to\u00a0the effect that a Bill is a Money\u00a0Bill,\u00a0is to be endorsed\u00a0and signed by him when it is transmitted to\u00a0Rajya\u00a0Sabha\u00a0and also when it is presented to the\u00a0President for his assent.<\/li>\n
    2. The Speaker\u2019s certificate on a Money Bill oncegiven is final and cannot be challenged.<\/li>\n
    3. A Money Bill cannot be referred to a JointCommittee of the Houses.<\/li>\n<\/ol>\n

      Money Bill as distinguished from Financial Bill<\/h3>\n
        \n
      1. Whereas a Money Bill deals solely with mattersspecified in article 110(1) (a) to (g) of the Constitution,\u00a0a Financial Bill does not exclusively deal with all or any\u00a0of the matters specified in the said article that is to say it contains some other provisions also.<\/li>\n
      2. Financial Bills can be divided into two In the first category are Bills which\u00a0inter-alia<\/em>\u00a0<\/em>contain provisions attracting article 110(1) (a) to (f) of\u00a0the Constitution. They are\u00a0categorised\u00a0as Financial Bills\u00a0under article 117(1) of the Constitution. Like Money\u00a0Bills, they can be introduced only inLok\u00a0Sabha\u00a0on the\u00a0recommendation of the President. However, other\u00a0restrictions in regard to Money Bills do not apply to this\u00a0category of Bills. Financial Bill under article 117(1) of\u00a0the Constitution can be referred to a Joint Committee\u00a0of the Houses.<\/li>\n
      3. In the second category are those Bills whichinter-alia<\/em>\u00a0contain\u00a0provisions which would on enactment\u00a0involve expenditure from the Consolidated Fund of India. Such Bills are\u00a0categorised\u00a0as Financial Bills\u00a0under article 117 (3) of the Constitution. Such Bills can\u00a0be introduced in either House of Parliament. However,\u00a0recommendation of the President is essential for\u00a0consideration of these Bills by either House and unless\u00a0such recommendation is received, neither House can\u00a0pass the Bill.<\/li>\n<\/ol>\n

        Constitution Amendment Bills\u2014not treated as\u00a0Money Bill<\/h3>\n
          \n
        1. A Constitution Amendment Bill is not treatedas a Money Bill even if all its provisions attract article\u00a0110(1) for the reason that such amendments are\u00a0governed by article 368 which over-rides the provisions\u00a0regarding Money Bills.<\/li>\n<\/ol>\n

          Some Categories of Money Bills<\/h3>\n
            \n
          1. Finance<\/em>Bill<\/em>:<\/em>\u00a0Finance Bill is a secret bill\u00a0introduced in\u00a0Lok\u00a0Sabha\u00a0every year immediately after\u00a0the presentation of the General Budget to give effect\u00a0to the financial proposals of the Government of India\u00a0for the following financial year. Finance Bills are treated\u00a0as Money Bills as they substantially deal with\u00a0amendments to various tax laws.<\/li>\n
          2. Appropriation<\/em>Bill<\/em>\u00a0<\/em>:\u00a0An Appropriation Bill is\u00a0introduced in\u00a0Lok\u00a0Sabha\u00a0immediately after adoption of\u00a0the relevant demands for grants. Such Bills are\u00a0categorised\u00a0as Money Bills as they seek toauthorise\u00a0appropriation from the Consolidated Fund of India, of\u00a0all moneys required to meet the grants made by the\u00a0House and the expenditure charged on the\u00a0Consolidated Fund of India.<\/li>\n<\/ol>\n

            Role of\u00a0Rajya\u00a0Sabha<\/h3>\n
              \n
            1. RajyaSabha\u00a0is required to return a Money Bill\u00a0passed and transmitted by\u00a0Lok\u00a0Sabha\u00a0within a period\u00a0of fourteen days from the date of its receipt. The period\u00a0of fourteen days is computed from the date of receipt\u00a0of the Bill in the\u00a0Rajya\u00a0Sabha\u00a0Secretariat and not from\u00a0the date on which it is laid on the Table of\u00a0Rajya\u00a0Sabha.<\/li>\n
            2. RajyaSabha\u00a0may return a Money Bill\u00a0transmitted to it with or without its recommendations.<\/li>\n
            3. If a Money Bill is returned byRajya\u00a0Sabha\u00a0without any recommendation, it is presented to the President for his assent.<\/li>\n
            4. If a Money Bill is returned byRajya\u00a0Sabha\u00a0with\u00a0recommendations it is laid on the Table of\u00a0LokSabha. Any Minister in the case of a Government Bill or any\u00a0member in the case of a private member\u2019s Bill after\u00a0giving two days notice, or with the consent of the\u00a0Speaker without notice, move that the amendments\u00a0recommended by\u00a0Rajya\u00a0Sabha\u00a0be taken into\u00a0 After the motion is carried, the\u00a0amendments are put to vote. If\u00a0Lok\u00a0Sabha\u00a0accepts the\u00a0amendment recommended by\u00a0RajyaSabha, the Money\u00a0Bill is deemed to have been passed by both Houses\u00a0of Parliament with the amendments recommended by\u00a0Rajya\u00a0Sabha\u00a0and accepted by\u00a0Lok\u00a0Sabha. If\u00a0Lok\u00a0Sabha\u00a0does not accept any of the amendments recommended\u00a0by\u00a0Rajya\u00a0Sabha, the Money Bill is deemed to have\u00a0been passed by both the Houses of Parliament in the\u00a0form in which it was passed by\u00a0Lok\u00a0Sabha\u00a0without any\u00a0of the amendments recommended by\u00a0Rajya\u00a0Sabha\u00a0and it is presented to the President for his assent. However,if\u00a0Rajya\u00a0Sabha\u00a0does not return a Money Bill within the\u00a0prescribed period of fourteen days, the Bill is deemed\u00a0to have been passed by both Houses of Parliament at\u00a0the expiry of the said period of fourteen days in the form\u00a0in which it was passed by\u00a0Lok\u00a0Sabha\u00a0and thereafter it is presented to the President for his assent.<\/li>\n
            5. Provisions of article 108 regarding joint sittingof both Houses do not apply to a Money Bill.<\/li>\n<\/ol>\n

              Assent to Money Bills<\/h3>\n
                \n
              1. LokSabha\u00a0Secretariat is responsible for\u00a0obtaining assent of all Money Bills after they have been\u00a0passed or are deemed to have been passed by the\u00a0Houses of Parliament.<\/li>\n
              2. The President may either give or withhold hisassent to a Money Bill. Under the Constitution, a Money\u00a0Bill cannot be returned to the House by the President\u00a0for reconsideration.<\/li>\n<\/ol>\n

                [Money Bills are governed by articles 108, 109,\u00a0110, 111 and 117 of the Constitution and Rules 72, 96, 103 to 108 of the Rules of Procedure and\u00a0Conduct of Business in\u00a0Lok\u00a0Sabha.]<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

                The Undisclosed Foreign Income and Assets Bill, which had secured the Lok Sabha\u2019s approval during the Budget session of Parliament has been cleared by the Office of President of India.…<\/p>\n","protected":false},"author":1,"featured_media":5690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[47],"tags":[354,516,1542,2009,2197,2561,2705],"class_list":["post-6178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-update","tag-article-110","tag-black-money","tag-indian-constitution","tag-lok-sabha","tag-money-bill","tag-president-of-india","tag-rajya-sabha","clearfix","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nPresidential nod to Black Money Bill - Legal Update<\/title>\n<meta name=\"description\" content=\"black money Bill. 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