PASSAGE OF LEGISLATIVE PROPOSALS

IN PARLIAMENT
The basic function of Parliament is to make laws. All legislative proposals have to be brought in the form
of Bills before Parliament. A Bill is a statute in draft and cannot become law unless it has received the
approval of both the Houses of Parliament and the assent of the President of India.
The process of law making begins with the introduction of a Bill in either House of Parliament. A Bill can
be introduced either by a Minister or a member other than a Minister. In the former case, it is called a
Government Bill and in the latter case, it is known as a Private Member's Bill.
A Bill undergoes three readings in each House, i.e., the Lok Sabha and the Rajya Sabha, before it is
submitted to the President for assent.
First Reading
The First Reading refers to (i) motion for leave to introduce a Bill in the House on the adoption of which
the Bill is introduced; or(ii) in the case of a Bill originated in and passed by the other House, the laying on
the Table of the House of the Bill, as passed by the other House.
Second Reading
The Second Reading consists of two stages.The "First Stage" constitutes discussion on the principles of
the Bill and its provisions generally on any of the following motions - that the Bill be taken into
consideration; or that the Bill be referred to a Select Committee of the House; or that the Bill be referred to
a Joint Committee of the Houses with the concurrence of the other House; or that the Bill be circulated for
the purpose of eliciting opinion thereon. The "Second Stage" constitutes the clause by clause
consideration of the Bill, as introduced in the House or as reported by a Select or Joint Committee, as the
case may be.
In the case of a Bill passed by Rajya Sabha and transmitted to Lok Sabha, it is first laid on the Table of
Lok Sabha by the Secretary-General, Lok Sabha. In this case the Second Reading refers to the motion (i)
that the Bill, as passed by Rajya Sabha, be taken into consideration; or (ii) that the Bill be referred to a
Select Committee (if the Bill has not already been referred to a Joint Committee of the Houses).
Third Reading
The Third Reading refers to the discussion on the motion that the Bill or the Bill, as amended, be passed.
Almost similar procedure is followed in Rajya Sabha in respect of Bills introduced in that House.

After a Bill has been finally passed by the Houses of Parliament, it is submitted to the President for his
assent. After a Bill has received the assent of the President, it becomes the law of the land.

Reference of Bills to Departmentally Related Standing Committees

The year 1993 ushered in a new era in the history of Indian Parliament when 17 Departmentally Related
Standing Committees were constituted. The number of Standing Committees has now been increased
from 17 to 24. While 8 Committees work under the direction of the Chairman, Rajya Sabha, 16
Committees work under the direction of the Speaker, Lok Sabha.
One of the important functions of these Committees is to examine such Bills introduced in either House as
are referred to them by the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as the case may be, and
make report thereon.
The reports of the Standing Committees have persuasive value. In case the Government accepts any of
the recommendations of the Committee, it may bring forward official amendments at the consideration
stage of the Bill or may withdraw the Bill reported by the Standing Committee and bring forward a new Bill
after incorporating the recommendations of the Standing Committee.

BILLS BEFORE A SELECT OR JOINT COMMITTEE

If a Bill is referred to a Select or a Joint Committee, it considers the Bill clause-by-clause just as the
House does. Amendments can be moved to the various clauses by the members of the Committee. After
the report of the Select or Joint Committee has been presented to the House, the member-in-charge of
the Bill usually moves the motion for consideration of the Bill, as reported by the Select or Joint
Committee, as the case may be.
A Money Bill or a Financial Bill containing any of the provisions calculated to make a Bill a Money Bill,
however, cannot be referred to a Joint Committee of the Houses.

RESTRICTION ON INTRODUCTION OF CERTAIN CATEGORIES OF BILLS IN

RAJYA SABHA
A Bill may be introduced in either House of Parliament. However,a Money Bill can not be introduced in
Rajya Sabha.It can only be introduced in Lok Sabha with prior recommendation of the President for
introduction in Lok Sabha. If any question arises whether a Bill is a Money Bill or not, the decision of the
Speaker thereon is final.
Rajya Sabha is required to return a Money Bill passed and transmitted by Lok Sabha within a period of 14

days from the date of its receipt. Rajya Sabha may return a Money Bill transmitted to it with or without
recommendations. It is open to Lok Sabha to accept or reject all or any of the recommendations of Rajya
Sabha.
However, if Rajya Sabha does not return a Money Bill within the prescribed period of 14 days, the Bill is
deemed to havebeen passed by both Houses of Parliament at the expiry of the said period of 14 days in
the form in which it was passed by Lok Sabha.
Like Money Bills, Bills which, inter alia, contain provisions for any of the matters attracting sub-clauses (a)
to (f) of clause (1) of article 110 can also not be introduced in Rajya Sabha. They can be introduced only
in Lok Sabha on the recommendation of the President. However, other restrictions in regard to Money
Bills do not apply to such Bills.

CONSTITUTION AMENDMENT BILLS

The Constitution vests in Parliament the power to amend the Constitution. Constitution Amendment Bills
can be introduced in eitherHouse of Parliament. While motions for introduction of Constitution
Amendment Bills are adopted by simple majority , a majority of the total membership of the House and a
majority of not less than two-thirds of the members present and voting is required for adoption of effective
clauses and motions for consideration and passing of these Bills. Constitution Amendment Bills affecting
vital issues as enlisted in the proviso to article 368(2) of the Constitution after having been passed by the
Houses of Parliament, have also to be ratified by not less than one half of the State Legislatures.

JOINT SITTING
Article 108(1) of the Constitution provides that when a Bill (other than a Money Bill or a Bill seeking to
amend the Constitution) passed by one House is rejected by the other House or the Houses have finally
disagreed as to the amendments made in the Bill or more than six months lapse from the date of the
receipt of the Bill by the other House without the Bill being passed by it, the President may, unless the Bill
has lapsed by reason of dissolution of Lok Sabha, notify to the Houses by message, if they are sitting, or
by public notification, if they are not sitting, his intention to summon them to meet in a Joint Sitting.
The President has made the Houses of Parliament (Joint Sittings and Communications) Rules in terms of
clause (3) of article 118 of the Constitution to regulate the procedure with respect to Joint Sitting of
Houses.
So far, there have been three occasions when Bills were considered and passed in a Joint Sitting of the
Houses of Parliament.

ASSENT TO BILLS
After a Bill has been passed by both the Houses of Parliament, it is presented to the President for his
assent. The President mayeither assent to the Bill, withhold his assent, or return the Bill, if it is not a
Money Bill, with a message for reconsideration of the Bill, or any specified provisions thereof, or for
considering the desirability of introducing any such amendments as he may recommend in his message.
The President may either give or withhold his assent to a Money Bill. A Money Bill can not be returned to
the House by the President for reconsideration. Also, the President is bound to give hisassent to
Constitution Amendment Bill passed by Parliament by the prescribed special majority and, where
necessary, ratified by the requisite number of State Legislatures.

Money Bill refers to a bill (draft law) introduced in the Lower Chamber of Indian Parliament (Lok
Sabha) which generally covers the issue of receipt and spending of money, such as tax laws, laws
governing borrowing and expenditure of the Government, prevention of black money etc.
Eg. of Money bills are Finance Bills and Appropriation Bills, Income Tax Act, 1961, The Undisclosed
Foreign Income And Assets (Imposition Of Tax) Bill, 2015 etc .
The term money bill hence, connotes certain characteristics of the proposed bill.
Under Article 110(1) of the Constitution of India a money bill is defined as follows
110(1)a Bill is deemed to be a Money Bill if it contains only provisions dealing with all or any of the
following matters, namely:
(a) the imposition, abolition, remission, alteration or regulation of any tax;
(b) the regulation of the borrowing of money or the giving of any guarantee by the Government of
India, or the amendment of the law with respect to any financial obligations undertaken or to be
undertaken by the Government of India;
(c) the custody of the Consolidated Fund or the Contingency Fund of India, the payment of moneys
into or the withdrawal of moneys from any such fund;
(d) the appropriation of moneys out of the Consolidated Fund of India;
(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or
the increasing of the amount of any such expenditure;
(f)

the receipt of money on account of the Consolidated Fund of India or the public account of India

or the custody or issue of such money or the audit of the accounts of the Union or of a State;
or

(g) any matter incidental to any of the matters specified in sub-clauses (a) to (f).
(2.) A Bill is not deemed to be Money Bill 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.
Features of Money Bills
Essentially a Money bill has the following features:

It can be introduced only in the Lok Sabha (lower chamber of the Parliament)

The bill is placed in Rajya Sabha (Upper chamber of the Parliament) thereafter and Rajya
Sabha can return the Bill with or without its recommendations.

In any case, the Bill has to be returned within a period of 14 days from the date of its receipt
by Rajya Sabha. Otherwise it is deemed to have been passed by both Houses at the expiration
of the said period in the form in which it was passed by Lok Sabha.

If the bill is returned to Lok Sabha without recommendation, a message to that effect is
reported by the Secretary-General to the Lok Sabha if in session, or published in the Bulletin for
the information of the members of the Parliament, if it is not in session. The Bill shall then be
presented to the President for his assent.

If the bill is returned to the Lok Sabha with amendments it has to be laid on the Table of the
House and taken up for consideration.

However, Lok Sabha is not bound to accept these amendments. Lok Sabha, under Article
109 of the Constitution, has the option to accept or reject all or any of the recommendations
made by Rajya Sabha. In any case, Lok Sabha has to inform Rajya Sabha about the status of
their recommendations, as to whether they have been accepted or not. It is not that Lok Sabha
does not accept any of the recommendations of Rajya Sabha. For instance, in the Income Tax
Bill, 1961, Rajya Sabha did recommend a number of amendments of substantial character, all of
which were agreed to by Lok Sabha.[1]

If Lok Sabha accepts any amendments as recommended by the Rajya Sabha, the Bill shall
be deemed to have been passed by both the Houses of the Parliament with the amendments
recommended by the Rajya Sabha and accepted by the Lok Sabha and a message to that effect
has to be sent to the Rajya Sabha.

If Lok Sabha does not accept the recommendations of the Rajya Sabha, the Bill shall be
deemed to have been passed by both the Houses in the form in which it was passed by the Lok
Sabha without any of the amendments recommended by the Rajya Sabha.

In all other bills final passing of the bill happens at Rajya Sabha. In case of money bills, final
passing happens at Lok Sabha and then it is sent to the President for his assent.

Unlike other bills, the President cannot return the Money Bill with his recommendations to the
Lok Sabha for reconsideration.

A defeat of Money bill in Lok Sabha is deemed political/parliamentary defeat of the government of
the day. Speaker has unquestionable powers to decide if a Bill is a Money Bill or not. It cannot be
questioned in any court. Rajya Sabha (Upper chamber of the Parliament)s dissent on a Money Bill
is of no political significance, as the Lok Sabha has overriding powers on Money Bills. Money bill
cannot be referred to even joint Committees of the two Houses of the Parliament (to resolve
differences between the two Houses), as is in the case of other bills. The Standing Committee of the
Parliament also cannot scrutinize a Money Bill.
More about money bills may be seen in the Legislative Procedures of Lok Sabha and Rajya Sabha.