Finance bill passed in Lok Sabha

Finance bill passed in Lok Sabha

Part of: GS Prelims and GS-II and III – Polity and Economy

In News:

• 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. 

Do you know?

• 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.
• This Bill encompasses all amendments required in various laws pertaining to tax, in accordance with the tax proposals made in the Union Budget.

Key takeaways:

• The government created room to raise the excise duty on petrol and diesel by as much as ₹8.
• India won’t tax non-resident Indians for domestic income of up to Rs. 15 lakh.
• The Finance Bill also proposed a more progressive personal income tax rate for people who do not avail of any tax incentives.
• The Finance Bill also widens the ambit of the “equalisation levy” introduced in 2016 on payments made to non-resident service providers for online advertisements or digital advertising space or facilities.
• This is expanded to include supply of services including online sale of goods, services or both by e-commerce operators.

Important Value Additions 

Financial Bills

• A Bill that contains some provisions related to taxation and expenditure, and additionally contains provisions related to any other matter is called a Financial Bill. Article 117 of Constitution deals with Financial bills.

Adjournment sine die 

• It means without assigning a day for a further meeting or hearing for an indefinite period. 

Equalisation Levy 

• It is a direct tax, which is withheld at the time of payment by the service recipient.