{"id":70146,"date":"2026-03-26T18:14:27","date_gmt":"2026-03-26T12:44:27","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=70146"},"modified":"2026-03-26T18:15:22","modified_gmt":"2026-03-26T12:45:22","slug":"lok-sabha-finance-bill","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/26-03-2026\/lok-sabha-finance-bill","title":{"rendered":"Lok Sabha Passes Finance Bill 2026"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ Polity and Governance<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Finance Bill, 2026 was passed by the Lok Sabha marking a significant step in concluding the Union Budget process for the 2026-27 financial year.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Finance Bill?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Finance Bill is a Money Bill<\/strong> that gives effect to the taxation and financial proposals of the Union Government.<\/li>\n\n\n\n<li>It is introduced annually after the presentation of the Union Budget under Article <strong>110<\/strong> of the Constitution. It includes provisions related to;\n<ul class=\"wp-block-list\">\n<li>Provisions related to <strong>direct and indirect taxes.<\/strong><\/li>\n\n\n\n<li>Amendments to <strong>existing tax laws.<\/strong><\/li>\n\n\n\n<li>Changes in <strong>financial regulations and policy framework.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of the Bill<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Provides legal sanction to tax proposals<\/strong>, ensuring revenue mobilisation.<\/li>\n\n\n\n<li>Promotes<strong> ease of doing business<\/strong> through tax simplification.<\/li>\n\n\n\n<li><strong>Encourages investment and consumption<\/strong> via targeted tax measures.<\/li>\n\n\n\n<li>Strengthens India\u2019s path towards <strong>fiscal consolidation and growth.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How is it different from the Appropriation Bill?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Appropriation Bill is introduced under<strong> Article 114<\/strong> of the Constitution of India to authorise the <strong>withdrawal of funds from the Consolidated Fund<\/strong> of India to meet government expenditure.<\/li>\n\n\n\n<li>It deals with appropriation of funds already voted by the Lok Sabha and charged expenditure, as provided under<strong> Article 114(3).<\/strong>\n<ul class=\"wp-block-list\">\n<li>The <strong>Bill does not allow any amendments<\/strong>, as it only seeks approval for expenditure already voted.<\/li>\n\n\n\n<li>It is introduced after the Demands for Grants are voted by the Lok Sabha under Article 113.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Both the Finance Bill and Appropriation Bill are classified as <strong>Money Bills.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Tax &amp; Financial Highlights<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Support for Key Sectors:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Digital infrastructure and electronics manufacturing.<\/li>\n\n\n\n<li>Marine products, leather industry, and critical minerals.<\/li>\n\n\n\n<li>Nuclear energy and strategic sectors.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>TCS Reductions:<\/strong> Tax Collected at Source (TCS) on overseas tour packages and remittances for education and medical purposes (under LRS) has been reduced to <strong>2%.<\/strong><\/li>\n\n\n\n<li><strong>Stock Market Taxes:<\/strong> Securities Transaction Tax (STT) on Futures increased to <strong>0.05% (from 0.02%),<\/strong> while the rate for Options rose to <strong>0.15%.<\/strong><\/li>\n\n\n\n<li><strong>Customs Exemptions:<\/strong> Basic customs duty has been exempted for <strong>17 life-saving cancer drugs.<\/strong><\/li>\n\n\n\n<li><strong>Corporate Buybacks: <\/strong>All share buybacks are now taxed as capital gains; promoters face an additional buyback tax.<\/li>\n\n\n\n<li><strong>Principles of Finance Bill 2026:\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>Trust-based tax administration,\u00a0<\/li>\n\n\n\n<li>Improving the ease of living for the common citizens,\u00a0<\/li>\n\n\n\n<li>Empowering MSMEs, farmers and cooperatives,\u00a0<\/li>\n\n\n\n<li>Strengthening India as a global business hub and\u00a0<\/li>\n\n\n\n<li>Enabling seamless trade facilitation and customs reforms.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Key Economic Terms<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tax Collected at Source (TCS)<\/strong> is a tax collected by the seller from the buyer at the time of sale of specified goods or services, as per <strong>Section 206C of the Income Tax Act, 1961.<\/strong>\n<ul class=\"wp-block-list\">\n<li>The seller collects a percentage of the transaction value as tax and deposits it with the government.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Securities Transaction Tax (STT)<\/strong> is a direct tax levied on the purchase and sale of securities traded on recognised stock exchanges in India.\n<ul class=\"wp-block-list\">\n<li>It was introduced in <strong>2004<\/strong> through the Finance Act. The tax is collected by stock exchanges and deposited with the government.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Fiscal Estimates for FY 2026-27<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Total Expenditure:<\/strong> \u20b953.47 lakh crore, marking a 7.7% increase over the previous fiscal year.\n<ul class=\"wp-block-list\">\n<li><strong>The total capital expenditure<\/strong> proposed for the next fiscal is \u20b912.2 lakh crore.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It proposes a gross tax revenue collection of <strong>\u20b944.04 lakh crore<\/strong> and a <strong>gross borrowing of \u20b917.2 lakh crore.<\/strong><\/li>\n\n\n\n<li><strong>The fiscal deficit<\/strong> for FY27 is projected at <strong>4.3% of GDP<\/strong>, lower than 4.4% in the current fiscal.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.newsonair.gov.in\/fm-nirmala-sitharaman-asserts-government-empowering-msmes-farmers-and-cooperatives-to-boost-jobs-and-overall-developm\" target=\"_blank\" rel=\"noopener\"><strong>AIR<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Finance Bill, 2026 was passed by the Lok Sabha marking a significant step in concluding the Union Budget process for the 2026-27 financial year. <\/li>\n<p><\/p>\n<p><strong> What is the Finance Bill? <\/strong><\/p>\n<li class=\"ms-5\"> The Finance Bill is a Money Bill that gives effect to the taxation and financial proposals of the Union Government. <\/li>\n<li class=\"ms-5\"> It is introduced annually after the presentation of the Union Budget under Article 110 of the Constitution. It includes provisions related to; <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/26-03-2026\/lok-sabha-finance-bill \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-70146","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/70146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=70146"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/70146\/revisions"}],"predecessor-version":[{"id":70149,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/70146\/revisions\/70149"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=70146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=70146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=70146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}