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.
