Constitution Section 117 — Special provisions as to financial Bills
Part V — THE UNION — Procedure in Financial Matters
Constitutional
Summary
A Bill or amendment that deals with taxes, borrowing money, or spending from India’s main government fund can only be introduced or moved if the President recommends it. Such a Bill cannot be introduced in the Council of States (the upper house of Parliament). However, no President’s recommendation is needed for an amendment that only reduces or abolishes a tax.
A Bill or amendment is not considered to be about taxes just because it sets fines, penalties, or fees for licences or services, or because it lets a local body change a tax for local purposes.
If a Bill would require spending money from the Consolidated Fund of India once it becomes law, neither house of Parliament can pass it unless the President has recommended that house consider the Bill.
Official Text
(1) A Bill or amendment making provision for any of the matters specified in sub-clauses
(a) to
(f) of clause (1) of article 110 shall not be introduced or moved except on the recommendation of the President and a Bill making such provision shall not be introduced in the Council of States:Provided that no recommendation shall be required under this clause for the moving of an amendment making provision for the reduction or abolition of any tax.
(2) A Bill or amendment shall not be deemed to make provision for any of the matters aforesaid by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.
(3) A Bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of India shall not be passed by either House of Parliament unless the President has recommended to that House the consideration of the Bill.