Roundup: Budget Session Of Parliament 2020

The Budget Session of the Parliament concluded on Monday, after both the houses adjourned sine die. The session began on January 31 and was scheduled to conclude on April 3. However, in face of the mortal threat posed by the global outbreak of COVID-19 pandemic, the members agreed to an early adjournment. The session was conducted in two phases, from January 31 till February 11 and then from March 3 till March 23. During this period, the overall productivity of Lok Sabha was 86% and that of Rajya Sabha was 76%. The highlights of key legislative actions during the Budget Session are given below: 1. Union Budget & Finance Bill The Session kick started with the Finance Minister Nirmala Sitharam laying the Union's Budget for the Financial Year 2020-21. In her budget, Sitharaman proposed to slash personal income tax rates for those individuals who do not avail of any deductions. The following picture gives a comprehensive view of the new and old tax rates:Inter alia, various other amendments to the Income Tax Act, Sovereign Wealth Funds, Excise & Customs, etc. were also proposed, which will be given effect by way of the Finance Bill 2020, passed by the Lok Sabha yesterday, March 24. The Bill was passed in the Lower House without any discussion after the leaders of parties decided so, in light of the urgent need to adjourn the house. Later in the evening, the (money) Bill was also returned by the Rajya Sabha after a clause by clause consideration, though still without any discussion. To read the salient features of the Bill, Click Here Click Here to access a thread on the Finance Minister's Budget Speech 2. Medical Termination of Pregnancy (Amendment) Bill, 2020 This Bill proposes to amend Section 3 of the Medical Termination of Pregnancy Act, 1971, to extend the upper limit for medical termination of pregnancy to 24 weeks, from the present stipulation of 20 weeks, for certain categories of women which will be defined in the MTP Rules. These categories will include 'vulnerable women' including rape victims. The Amendment Bill, passed by the Lok Sabha on March 17, stipulates that the opinion of one doctor will be required for termination of pregnancy up to 20 weeks; and opinion of two doctors will be required for termination of pregnancy of 20 to 24 weeks. To further understand the objects and reasons of the bill Click Here 3. Direct Tax Vivad se Vishwas Bill, 2020 This Bill, aimed to reduce direct tax litigation, provides a mechanism for resolution of disputes related to income tax and corporation tax, pending before any appellate forum as on January 31, 2020. As mentioned by the Finance Minister during her budget speech, tax payers who pay the disputed tax amount by March 31, 2020, will be entitled to absolute waiver of any interest or penalty associated with such tax. However, those making the payments after the cut-off date will be required to pay an additional amount. The legislation had received a nod from the Lok Sabha on March 4, and being a money bill it was returned by the Rajya Sabha on March 13. It has now been put to force, after the central government notified it in the Official Gazette, on March 17. Click Here to read further on the Resolution Mechanism 4. Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 Aimed at easing the insolvency resolution process, the Bill was passed by the Lok Sabha on March 6 and by the Rajya Sabha on March 12. It has also been enforced, after a gazette notification on March 13. The Amendment Act makes changes to the Code for the fourth time since its enactment to "fill the critical gaps in the corporate insolvency framework". Some of the salient features of the Amendment Act include: Waiver of offences committed by a corporate debtor prior to the commencement of the CIRP Non-suspension of the debtor's licences, permits, etc. during the Moratorium period Minimum threshold to be observed by homebuyer creditors before initiation of an insolvency resolution process, etc. The Act replaces the IBC (Amendment) Ordinance, 2019, which was promulgated last year, on December 28, 2019. To read a more detailed piece on the amendments, Click Here 5. Aircraft (Amendment) Bill, 2020 This Bill proposes to bring the Aircraft Act, 1934 in line with the internationally accepted standards, procedures and practices as laid down by the International Civil Aviation Organisation (ICAO). Passed by the Lok Sabha on March 17, the Bill proposes to convert the following three existing bodies under the Ministry of Civil Aviation into statutory bodies: Directorate General of Civil Aviation Bureau of Civil Aviation Security (BCAS) Aircraft Accidents Investigation Bureau (AAIB) It also proposes to raise the maximum limit on fines for offences such as: (i) carrying arms, explosives, or other dangerous goods ...

Roundup: Budget Session Of Parliament 2020

Akshita Saxena

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