Current Affairs PDF

Finance Bill gets presidential assent, takes effect from April 1

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

On 31st March 2017, President Pranab Mukherjee gave his assent to the Finance Bill 2017. Thus, all financial and taxation related provisions as announced in Budget 2017 have now attained a legal status.

  • Earlier, on 30th March 2017, Lok Sabha cleared Finance Bill, 2017 and rejected all five amendments recommended by Rajya Sabha. As the Finance Bill, 2017 was tabled in Parliament as Money Bill; Lok Sabha had full discretion with regards to its passage.

A word on advancing the Budget Presentation Date:

Breaking the tradition established since British era, this time Govt. presented Union Budget on 1st February instead of 28th February.

  • Rationale cited for this move by Modi Govt. was to get authorisation for funds right at the start of the new financial year.President Pranab Mukherjee
  • Under earlier practice of presenting Union Budget on 28th February, the authorisation was received in mid-May, thus delaying the implementation of proposed programmes by 40-50 days. Moreover, as most of the taxation related provisions will take effect from 1st April itself, the corporate houses and other businesses too will have accounting convenience in tax treatment.
  • Merging Railway Budget with Union Budget and doing away with Plan and Non-Plan expenditure segregation were other two conventional reforms brought in to this year’s Budget process.

Key Provisions of Finance Bill, 2017 that will come to effect from 1st April 2017:

  • Limiting cash transactions to 2 lakh. This cap is at par with requirement to quote PAN number on cash spending. Violation of this rule will result in a penalty of equal amount, to be borne by the recipient.
  • Biometric identifier Aadhaar has been made mandatory for filing income tax returns, effective from 1st July 2017.
  • The Bill also amends Companies Act 2013, by permitting donations to electoral trust only by means of cheque, demand draft and electronic transfers, which should also be shown in Profit & Loss account.

Above three proposals are being considered as a tirade against black money.

With Finance Bill, 2017 becoming a law, following appellate tribunals will be dissolved and their functions will be allotted to other tribunal

Appellate tribunal that will be dissolved Tribunal that will take over the functions
Competition Appellate Tribunal National Company Law Appellate Tribunal (NCLAT)
Airports Economic Regulatory Authority Appellate Tribunal Telecom Disputes Settlement and Appellate Tribunal (TDSAT)
Cyber Appellate Tribunal
 Copyright Board Intellectual Property Appellate Board
National Highways Tribunal Airport Appellate Tribunal
Employees Provident Fund Appellate Tribunal Industrial Tribunal.