Article 117 of CoI : Article 117: Special provisions as to financial Bills.

Explanation using Example

Example 1:

The Indian government wants to introduce a new bill that proposes to increase the income tax rate for individuals earning above a certain threshold. According to Article 117(1), this bill cannot be introduced in the Parliament without the recommendation of the President. Additionally, this bill cannot be introduced in the Rajya Sabha (Council of States) but must be introduced in the Lok Sabha (House of the People). However, if an amendment is proposed to reduce or abolish this new tax rate, such an amendment does not require the President's recommendation.

Example 2:

A new bill is proposed to impose a fine for littering in public places. According to Article 117(2), this bill does not fall under the special provisions of financial bills because it only imposes fines and does not deal with taxes or other financial matters specified in Article 110. Therefore, this bill can be introduced without the President's recommendation and can be introduced in either House of Parliament.

Example 3:

The government proposes a bill to allocate funds for a new national highway project, which will involve expenditure from the Consolidated Fund of India. According to Article 117(3), this bill cannot be passed by either the Lok Sabha or the Rajya Sabha unless the President has recommended the consideration of the bill to the respective House. This ensures that the President is aware of and approves the expenditure from the national treasury before the bill is passed.

Example 4:

A local municipal corporation proposes a bill to increase property taxes within its jurisdiction to fund local infrastructure projects. According to Article 117(2), this bill does not require the President's recommendation because it deals with the imposition of taxes by a local authority for local purposes. Therefore, the municipal corporation can proceed with the bill without needing approval from the President or the Parliament.