**Will Rishi Sunak Be a Good Prime Minister?**

**Will Rishi Sunak Be a Good Prime Minister?**

Today we will learn about government finance. The most heard name recently is Rishi Sunak,ex Chancellor of exchequer of UK(equivalent to FM of India). Let's see what kind of financial management these officers do.

Annual Financial Statement(or budget but the term budget is not mentioned anywhere in the Constitution) is presented by FM on 1st February of every year as per article 112 of the Constitution (see provisions of article 112 of constitution). Budget says about the upcoming year and economic survey says about the state of the economy in gone year. It is presented one day before budget presentation.

**Budget is presented as Finance Bill.

**What does a finance bill contain?

Ans: 1)All amendments to various taxation laws.e.g. Pranab Mukherjee,then FM introduced Retrospective Taxation by Finance Bill,2012-13,income tax Slabs,addition/removal of new tax,

amendments to money laundering acts etc.

**Let's talk about an interesting case in India's taxation history. Laws are evolutionary. Govts learn from loopholes.

Vodafone bought 67% share of Hutchinson Whampoa(Hutch mobile) in 2007. Both the companies are not Indian company. But these assets which were to be transferred from Hutch to Vodafone were located mainly in India i.e. foreign companies did a deal for assets located in India(indirect transfer) but govt of India would get no tax out of it for Capital Gains(by Vodafone). If you earn a lottery for Rs 10 lakhs,then also you have to give a huge amount as tax to govt.

GoI taxed Vodafone for the transaction & case went to Supreme Court & GoI lost the case against Vodafone. Then FM,Mukherjee amended Income Tax Act,1961 retrospectively through Finance Act,2012. NDA govt removed this taxation in 2021.

**Home work: What is a Money Bill? What is the procedure for introducing such a bill in the parliament? Who decides a money bill? What are the differences between Money bill & Finance Bill?

N.B. "Title of the write-up" has no connection with "Content of the write-up".

(TO BE CONTINUED.Lots of things to say.)

By,Hemen Sarma

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