Memorandum Explaning the Finance Bill 2023

The Indian Constitution defines the Finance Bill as a Money Bill, and it contains the tax proposals put forth by the government. This bill outlines changes in existing taxes, new taxes, expenditures, revenues, and government borrowings, and is a crucial component of the Union Budget. Parliament must approve the Finance Bill before it can be implemented.

Along with the Finance Bill, the government also submits a Memorandum Explaining the Provisions in the Finance Bill. This document provides a detailed explanation of the changes proposed in the Finance Bill, including legal amendments required to implement these changes.

For instance, the Memorandum to the Finance Bill of 2023 contained provisions related to direct taxes and proposed changes to the Income Tax Act of 1961. The memorandum is organized under various sub-heads, including tax rate amendments, expansion of the tax base, anti-abuse measures, tax incentives, and more.