Article 110 of CoI : Article 110: Definition Of Money Bills

Explanation using Example

Imagine the government of India wants to introduce a new tax on digital transactions to increase revenue. A bill is drafted that strictly includes provisions for the imposition of this new tax. Since the bill deals with the imposition of a tax, it aligns with the criteria outlined in Article 110(1)(a) of the Constitution of India for a Money Bill.

The bill is introduced in the Lok Sabha, and after debate and passage, it is sent to the Rajya Sabha. The Rajya Sabha can suggest amendments but cannot veto it, as the bill is certified as a Money Bill by the Speaker of the Lok Sabha. This certification is final and cannot be challenged as per Article 110(3).

Once both houses have discussed the bill, and the Lok Sabha has either accepted or rejected the recommendations of the Rajya Sabha, the bill is sent to the President for assent. The Speaker of the Lok Sabha endorses the bill with a certificate stating it is a Money Bill as per Article 110(4), and the President signs it into law.