Budget Session 2015 : Snapshot of the Legislative business transacted by Parliament

The recently concluded Budget Session of the Parliament was amongst the most productive in recent times. During this session, Lok Sabha worked for 123% of its scheduled time, while Rajya Sabha’s productivity was at 101%. Though both Houses of Parliament witnessed disruptions on issues of farmer suicides, food parks, and a CAG audit report on renewable energy financing, the House could transact significant legislative business.The Budget session of Parliament began on February 23, 2015 and broke for a 3-week recess on March 20, 2015.In this session, Bills replacing Ordinances constituted 39% of the total Bills introduced. In the last 10 years, the other instance when Ordinances had a high share of the Bills introduced was in Budget session 2008 when the Ordinance to Total Bills introduced ratio was 42%.Bills replacing Ordinances this session addressed insurance, coal, mines, mines and minerals, citizenship, Andhra Pradesh reorganisation and land acquisition. Of these Bills five were passed and the Land Acquisition Bill (Ordinance promulgated twice) was referred to a Joint Parliamentary Committee.In a rare instance- the first time in 47 years, a private member's Bill, The Rights of Transgender Persons Bill, 2014 protecting and providing rights for transgenders was passed by the Rajya Sabha. After many years, an amendment to the motion of thanks to the President's address (moved by Mr. Sitaram Yechury and fellow CPI(M) member P. Rajeeve) was passed in the Rajya Sabha.A snapshot of the important legislative business transacted in Parliament during the budget session:1. The Companies (Amendment) Bill 2014The Companies (Amendment) Bill 2014 was introduced in the Lok Sabha on December 12, 2014 by the Minister of Finance, Mr. Arun Jaitley. It was passed in Lok Sabha on December 17, 2014, and in the Rajya Sabha on May 13, 2015.Key Features of the Bill:The Bill introduces certain amendments in relation to Related Party Transactions, fraud reporting by auditors, making common seal optional, and jurisdiction of special courts to try certain offences etc. The Statement of Objects and Reasons of the Bill states that this is to ensure ease of business.The Bill removes the requirement of a minimum paid up share capital amount for private and public companies. It also provides for stringent punishment for contraventions for acceptance of deposits by the company from the public.Under the Act, any contract of a particular sum that a company wants to enter into must have prior approval of the company by a special resolution. The Bill replaces the requirement of obtaining a special resolution with that of an ordinary resolution. The Bill also states that a resolution would not be necessary for transactions between a holding company and its wholly owned subsidiary whose accounts are consolidated with such holding company and have been placed before the shareholders for their approval.The Bill also deletes the requirement of a common seal for the company throughout the Act.2. The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015: The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 was introduced in Lok Sabha on March 20, 2015 by the Minister of Finance, Mr. Arun Jaitley. It was passed in the Rajya Sabha on May 13, 2015.Key Features of the Bill:The Bill will apply to Indian residents and seeks to replace the Income Tax (IT) Act, 1961 for the taxation of foreign income. It penalizes the concealment of foreign income, and provides for criminal liability for attempting to evade tax in relation to foreign income.The total undisclosed foreign income and asset of an individual would include: (i) income, from a source located outside India, which has not been disclosed in the tax returns filed; (ii) income, from a source outside India, for which no tax returns have been filed; and (iii) value of an undisclosed asset, located outside IndiaA flat rate of 30 per cent tax would apply to undisclosed foreign income or assets of the previous assessment year. No exemption, deduction or set off of any carried forward losses (as provided under the IT Act) would apply. This would apply from April 1, 2016 onwards.The penalty for nondisclosure of foreign income or assets would be equal to three times the amount of tax payable, in addition to tax payable at 30%. The penalty for not furnishing income tax returns in relation to foreign income or assets is a fine of Rs 10 lakh. This would not apply to an asset, with a value of five lakh rupees or less. If a person who has filed tax returns does not disclose his foreign income, or submits inaccurate details of the same, he has to pay a fine of Rs 10 lakh. This would not apply to an asset, with a value of five lakh rupees or less.The Bill extends a one-time compliance opportunity to persons who have any undisclosed foreign assets (for all previous assessment years) will be provided for a limited period. Such persons would be permitted to file a declaration...

Budget Session 2015 : Snapshot of the Legislative business transacted by Parliament

LIVELAW NEWS NETWORK

Tags