Recently the finance bill,2022 has passed by Lok sabha with the 39 proposed amendments.
News Highlights
The amendments which were proposed also included the points regarding the taxation of virtual digital assets(VDA) and tightening the norms for taxation of cryptocurrencies by disallowing set off any losses with gains from other virtual digital assets.
As per the bill,2022 VDA could be a code or number, or token which can be transferred, stored, or traded electronically.
These VDA include cryptocurrencies and non-fungible tokens which have gained fads over the years.
The bill also includes the provision related to 1%TDS for VDAs which will come into effect from July 1, 2022.
The bill also added the section 135AA in the Customs Act which added the punishment provisions with imprisonment for six months or fine which may extend to 50,000 or both for a person who publishes any information relating to the value or classification or quantity of goods entered for export from India or import to India.
Finance bill and its types
A finance bill is is a bill that led to the provisions related to the finances of the country which included the taxes, the government expenditure, government borrowings, revenues, etc.This bill introduced each year to give effect to the financial proposal of the government of india for the following financial year.
Indian constitution defines its financial legislation in two categories as Money bill and financial bill;
Money bill(article 110)
Financial bill 1(117)(1)
Financial bill 2 (117)(3)
As per the provisions regarding these bills, it can be analyzed that all money bills can be categorized under financial bills but all financial bills can not be the money bill. It is being certified by the speaker of the Lok Sabha that whether the proposed bill is a money bill or not and his decision sustained final which he takes on the basis of the provision given in the constitution in article110.
