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Type: Bills/Act/Laws

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Parliament – Sessions, Procedures, Motions, Committees etc

What is Finance Bill?

Bills/Act/Laws | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure,Parliament & State Legislatures
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Finance Bill

Mains level: Finance Bill

The Parliament has passed the Finance Bill 2020 with 40 amendments without any discussion.

Highlights of the Bill

  • Among the important amendments included was one enabling the government to raise additional excise duty on petrol by up to Rs 18 per litre and diesel by up to Rs 12 per litre when required.
  • Amendments enabling the taxation of NRIs’ India-controlled income above Rs 15 lakh, and another extending the DDT exemption to REITs and Infrastructure Investment trusts were passed.
  • The Bill also changes the definition of ‘Resident’, as stipulated under the Income Tax Act.
  • Presently, a person is considered a resident of India, i.e. their global income is taxable in India if they are in the country for more than 182 days a year. This has now been reduced to 120 days.
  • The amendments also include provisions for levying TDS of 1 per cent on e-commerce transactions.

What is a Finance Bill?

  • As per Article 110 of the Constitution, the Finance Bill is a Money Bill.
  • The Finance Bill is a part of the Union Budget, stipulating all the legal amendments required for the changes in taxation proposed by the Finance Minister.
  • This Bill encompasses all amendments required in various laws pertaining to tax, in accordance with the tax proposals made in the Union Budget.
  • The Finance Bill, as a Money Bill, needs to be passed by the Lok Sabha — the lower house of the Parliament. Post the Lok Sabha’s approval, the Finance Bill becomes Finance Act.

Difference between a Money Bill and the Finance Bill

1) Money Bill

  • A Money Bill has to be introduced in the Lok Sabha as per Section 110 of the Constitution. Then, it is transmitted to the Rajya Sabha for its recommendations.
  • The Rajya Sabha has to return the Bill with recommendations in 14 days.
  • However, the Lok Sabha can reject all or some of the recommendations.

2) Finance Bill

  • In a general sense, any Bill that relates to revenue or expenditure is a Financial Bill.
  • The Finance Bill is introduced in Lok Sabha.
  • Rajya Sabha can recommend amendments in the bill. However, the bill has to be passed by the Parliament within 75 days of introduction.

>Types of Finance Bills

Type I

  • Financial Bill Cat-1 is a bill which contains any of the matters specified in Article 110 but does not exclusively deal with such matters.
  • For example- a bill which contains a taxation clause, but does not deal solely with taxation under Article 117 (1), has two features in common with a money bill.
  1. It cannot be introduced in the Rajya Sabha.
  2. It can only be introduced in Lok Sabha with the prior recommendation of the President.(Similarities)
  • But has one feature uncommon that is, not being a Money Bill, the Rajya Sabha has the same power to reject or amend such Financial Bill subject to limitation.

Type II

  • It is a finance bill which merely involves expenditure and does not include any of the matters specified in Article 110.
  • It is an Ordinary Bill and may be initiated in either House and the Rajya Sabha has full power to reject or ament it.
  • It is thus apparent that all Money Bills are Financial Bills but all Financial Bills are not Money Bills.

Who decides the Bill is a Finance Bill?

  • The Speaker of the Lok Sabha is authorised to decide whether the Bill is a Money Bill or not.
  • Also, the Speaker’s decision shall be deemed to be final.

Why Finance Bill is needed?

  • The Union Budget proposes many tax changes for the upcoming financial year, even if not all of those proposed changes find a mention in the Finance Minister’s Budget speech.
  • These proposed changes pertain to several existing laws dealing with various taxes in the country.
  • The Finance Bill seeks to insert amendments into all those laws concerned, without having to bring out a separate amendment law for each of those Acts.
  • For instance, a Union Budget’s proposed tax changes may require amending the various sections of the Income Tax law, Stamp Act, Money Laundering law, etc.
  • The Finance Bill overrides and makes changes in the existing laws wherever required.

What changes can be made via Finance Bill?

  • The most awaited changes in the tax proposals in the Union Budget usually pertain to personal income tax.
  • For taxpayers across the country, the most awaited moment is when the Finance Minister’s speech announces an increase in minimum income threshold, or declares any changes in income tax slabs to make it less costly, or other exemptions.
  • In addition, there might be changes in the rules, procedures, and deadlines for filing tax returns or the payment of tax itself.
  • For instance, there might be a change in the amount of penalty for missing the deadline. Those proposed changes would typically need to be brought in via amending the Income Tax Act.
  • Among other changes, the FM may propose in the Union Budget with regard to the rates or processes for payment or administration of stamp duty levied on various instruments.
  • Such a change would need to be brought in via an amendment to the Stamp Act.
  • Since the introduction of GST, there is no amendment to indirect taxes in the Union Budget, since that is under the purview of the GST Council.

 

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

New environment impact norm cuts time for public hearing

Bills/Act/Laws | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia
Note4Students

From UPSC perspective, the following things are important :

Prelims level: EIA in India

Mains level: Read the attached story

A set of key updates to India’s Environment Impact Assessment (EIA) Act has been proposed to reduce the time given to people to air objections.

Features proposed by the amendment

  • The draft EIA notification proposes to be an update to the EIA of 2006, which specifies a “minimum of 30 days” for people to respond.
  • The current version of the update, which will likely become law in 60 days, gives a “minimum of 20 days” of notice period.
  • The public hearing process is considered a key component of the EIA. An organisation has to submit a detailed plan, as part of the EIA process that details the nature, need, potential impact and remedial measures, if their proposed infrastructure project threatens to significantly impact a region.
  • It also requires that the public-hearing process be wrapped up in 40 days, as opposed to the existing norm of 45 days.

Environmental Impact Assessment (EIA) in India

  • EIA is a management tool to minimize adverse impacts of developmental projects on the environment and to achieve sustainable development through timely, adequate, corrective and protective mitigation measures.
  • The MoEFCC uses EIA Notification 2006 as a major tool for minimizing the adverse impact of rapid industrialization on the environment and for reversing those trends which may lead to climate change in long run.
  • EIA has now been made mandatory under the Environmental (Protection Act, 1986 for 29 categories of developmental activities involving investments of Rs. 50 crores and above.

EIA stages

  1. Screening: This stage decides which projects a full or partial assessment need study.
  2. Scoping: This stage decides which impacts are necessary to be assessed. This is done based on legal requirements, international conventions, expert knowledge and public engagement. This stage also finds out alternate solutions that avoid or at least reduce the adverse impacts of the project.
  3. Assessment & evaluation of impacts and development of alternatives: This stage predicts and identifies the environmental impacts of the proposed project and also elaborates on the alternatives.
  4. EIA Report: In this reporting stage, an environmental management plan (EMP) and also a non-technical summary of the project’s impact is prepared for the general public. This report is also called the Environmental Impact Statement (EIS).
  5. Decision making: The decision on whether the project is to be given approval or not and if it is to be given, under what conditions.
  6. Monitoring, compliance, enforcement and environmental auditing: This stage monitors whether the predicted impacts and the mitigation efforts happen as per the EMP.

Scope of Environmental Clearance (EC)

  • Environmental clearance is required in respect of all new projects or activities listed in the Schedule to the 2006 notification and their expansion and modernization, including any change in product –mix.
  • Since EIA 2006 the various developmental projects have been re-categorised into category ‘A’ and category ‘B’ depending on their threshold capacity and likely pollution potential.
  • They require prior EC respectively from MOEFCC or the concerned State Environmental Impact Assessment Authorities (SEIAAs).
  • Where state level authorities have not been constituted, the clearance would be provided by the MOEFCC.

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The Central Sanskrit Universities Bill, 2019

Bills/Act/Laws | History | Mains Paper 1: Arts & Culture
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Highlights of the bill

Mains level: Read the attached story

 

 

The Union Minister of HRD has introduced The Central Sanskrit Universities Bill, 2019 in Rajya Sabha.

Central Sanskrit Universities Bill, 2019

The Bill is intended to convert India’s three deemed-to-be Sanskrit universities — (i) Rashtriya Sanskrit Sansthan, New Delhi, (ii) Shri Lal Bahadur Shastri Rashtriya Sanskrit Vidyapeeth, New Delhi, and (iii) Rashtriya Sanskrit Vidyapeeth, Tirupati — into Central Sanskrit Universities.

The following are the salient features of the Bill:

What the universities will do

The proposed central universities will:

  1. disseminate and advance knowledge for the promotion of Sanskrit,
  2. make special provisions for integrated courses in humanities, social sciences, and science, and
  3. train manpower for the overall development and preservation of Sanskrit and allied subjects.

Powers and functions

These include:

  1. prescribing courses of study and conducting training programmes,
  2. granting degrees, diplomas, and certificates,
  3. providing facilities through a distance education system,
  4. conferring autonomous status on a college or an institution,
  5. providing instructions for education in Sanskrit and allied subjects.

University authorities

Some of the authorities that the universities will have:

  • A court, which will review the policies of the university and suggest measures for its development.
  • An Executive Council, which will be the principal executive body. The 15-member council will include the Vice-Chancellor appointed by the Centre, who will be the chairperson; a joint secretary of the Ministry of HRD, and two eminent academics from the field of Sanskrit or allied subjects.
  • The council will, among other functions, create teaching and academic posts and their appointment, and manage the revenue and property of the university.
  • An Academic and Activity Council, which will supervise academic policies.
  • A Board of Studies, which will approve the subjects for research and recommend measures to improve standards of teaching.

Visitor of the universities

  • Like at all central universities, the President of India will be the Visitor of the central Sanskrit universities.
  • He may appoint persons to review and inspect the functioning of the University.
  • The Executive Council may take action based on the findings of the inspection.

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Parliament – Sessions, Procedures, Motions, Committees etc

In news: Two-child Norm

Bills/Act/Laws | Governance | Mains Paper 1: Population & Associated Issues
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Art. 47

Mains level: Population explosion in India

A Rajya Sabha MP has introduced a Private Member’s Bill on two-child norms.

Key propositions of the Bill

  • Essentially, the Bill aims to amend the Constitution in order to incentivise limiting families to two children by offering tax concessions, priority in social benefit schemes and school admissions, among other things.
  • It proposes incentives in taxation, education and employment for people who limit their family size to two children.

Article 47A

  • The Bill has sought the incorporation of a new provision, Article 47A in Part IV of the Constitution, to withdraw all concessions from people who fail to adhere to the “small-family” norm.
  • Article 47A says the following:

 “47A. The State shall promote small family norms by offering incentives in taxes, employment, education etc. to its people who keep their family limited to two children and shall withdraw every concession from and deprive such incentives to those not adhering to small family norm, to keep the growing population under control.”

Note: Article 47 of the Indian Constitution is one of the DPSP  which directs the State to raise the level of nutrition and the standard of living and to improve public health as among its primary duties and, in particular, the State shall endeavour to bring about prohibition of intoxicating drinks and drugs which are injurious to health.

Why such Bill?

  • The Bill’s Statement of Object and Reasons states that the fact that India’s population has already crossed 125 crore is “really frightening”.
  • It goes on to say that India’s population has doubled in the last 40 years and that it is expected to unseat China as the world’s most populous nation in the next couple of decades.
  • Despite the fact that we have framed a National Population Control Policy, we are the second most populous country in the world.
  • Further, the population explosion will cause “many problems” for our future generations.
  • The Bill also makes a reference to “overburdened” natural resources that are overexploited because of overpopulation.

Statewide policies relating to two-child norms

Assam Cabinet has recently decided that those with more than two children will be ineligible for government jobs from 2021. Other states with similar norms:

Rajasthan: For government jobs, candidates who have more than two children are not eligible for appointment.

Madhya Pradesh: The state follows the two-child norm since 2001. Under Madhya Pradesh Civil Services (General Condition of Services) Rules, if the third child was born on or after January 26, 2001, one becomes ineligible for government service. The rule also applies to higher judicial services.

Telangana: Under Section 19 (3) read with Sections 156 (2) and 184 (2) of Telangana Panchayat Raj Act, 1994, a person with more than two children shall be disqualified from contesting election. However, if a person had more than two children before May 30, 1994, he or she will not be disqualified.  The same sections in the Andhra Pradesh: AP Panchayat Raj Act, 1994, apply to Andhra Pradesh, where a person having more than two children shall be disqualified from contesting election.

Gujarat: In 2005, the government amended the Gujarat Local Authorities Act. The amendment disqualifies anyone with more than two children from contesting elections for bodies of local self-governance — panchayats, municipalities and municipal corporations.

Maharashtra: The Maharashtra Zilla Parishads And Panchayat Samitis Act disqualifies people who have more than two children from contesting local body elections (gram panchayats to municipal corporations). The Maharashtra Civil Services Rules, 2005 states that a person having more than two children is disqualified from holding a post in the state government. Women with more than two children are also not allowed to benefit from the Public Distribution System.

Karnataka: The Karnataka (Gram Swaraj and Panchayat Raj) Act, 1993 does not bar individuals with more than two children from contesting elections to local bodies like the gram panchayat. The law, however, says that a person is ineligible to contest “if he does not have a sanitary latrine for the use of the members of his family”.

Odisha: The Odisha Zilla Parishad Act bars those individuals with more than two children from contesting.

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Human Rights Issues

Karnataka Anti-superstition Law

Bills/Act/LawsStates | Governance | Mains Paper 1: Social Empowerment
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: Superstitions and associated socail injustice

A controversial anti-superstition law in Karnataka was formally notified by the current government.

Provisions of the earlier drafts

  • The law, which was initially drafted as the Karnataka Anti Superstition Bill, 2013, was a pet project of former CM Siddaramaiah.
  • The model Bill held human dignity as its central tenet and sought eradication of irrational practices found in different communities.
  • The first draft made practices like inflicting self-wounds and conversion through bribery illegal.
  • Some of the proposals opposed by religious leaders and political parties in the early draft were the ban on practices such as the carrying of priests in palanquins, worshipping the feet of religious leaders.
  • It sought to ban Made Snana practised in the Dakshina Kannada region where Dalits roll over the remains of food consumed by upper castes.

The current version

  • A Bill with sizable consensus across the political spectrum finally evolved in 2017. A total of 16 practices have been banned under the law.
  • The practice of Vaastu, astrology, pradakshina or circumabulation of holy places, yatras, parikramas performed at religious places were kept out of the purview of the law.
  • Made Snana was banned under the law with respect to having Dalits roll over leftover food.
  • The practice has now been modified to be voluntary and not involving leftover food.
  • Practices such as barring menstruating women from entering houses of worship and their homes, coercing people to take part in fire-walks, and beating up people by declaring them evil, are among the irrational practices that have been banned under the 2017 law.

Penalties

  • The law stipulates “imprisonment for a term which shall not be less than one year but which may extend to seven years and with fine which shall not be less than five thousand rupees but which may extend to fifty thousand rupees”, as punishment for violations.
  • The law is to implemented by the state police with the appointment of vigilance officers under the law at police stations.

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Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

[pib] The Medical Termination of Pregnancy (Amendment) Bill, 2020

Bills/Act/LawsPIB | Governance | Mains Paper 2: Health & Education
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Highlights of the bill

Mains level: MTP: Ethical and health issues surrounding it

The Union Cabinet has approved the Medical Termination of Pregnancy (Amendment) Bill, 2020 to amend the Medical Termination of Pregnancy Act, 1971.

About the Bill

  • The Medical Termination of Pregnancy (Amendment) Bill, 2020 is for expanding access of women to safe and legal abortion services on therapeutic, eugenic, humanitarian or social grounds.
  • It aims to increase upper gestation limit for termination of pregnancy under certain conditions and to strengthen access to comprehensive abortion care, under strict conditions, without compromising service and quality of safe abortion.

Salient features of proposed amendments:

  • Proposing requirement for opinion of one provider for termination of pregnancy, up to 20 weeks of gestation and introducing the requirement of opinion of two providers for termination of pregnancy of 20-24 weeks of gestation.
  • Enhancing the upper gestation limit from 20 to 24 weeks for special categories of women which will be defined in the amendments to the MTP Rules and would include ‘vulnerable women including survivors of rape, victims of incest and other vulnerable women (like differently-abled women, Minors) etc.
  • Upper gestation limit not to apply in cases of substantial foetal abnormalities diagnosed by Medical Board. The composition, functions and other details of Medical Board to be prescribed subsequently in Rules under the Act.
  • Anonymity of the person: Name and other particulars of a woman whose pregnancy has been terminated shall not be revealed except to a person authorised in any law for the time being in force.

Benefits

  • It is a step towards safety and well-being of the women and many women will be benefitted by this.
  • Recently several petitions were received by the Courts seeking permission for aborting pregnancies at a gestational age beyond the present permissible limit on grounds of foetal abnormalities or pregnancies due to sexual violence faced by women.
  • The proposed increase in gestational age will ensure dignity, autonomy, confidentiality and justice for women who need to terminate pregnancy.

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