Which among the following is true about a Money Bill?
- (1) Any bill that provides for the imposition or abolition of any tax by any local authority automatically qualifies to be a Money Bill.
- (2) If the Council of States makes some recommendations on the Money Bill, the House of the People is bound to accept those recommendations.
- (3) If the Money Bill is not returned to the House of the People within fourteen days by the Council of States, it is deemed to be passed.
Select the correct answer using the codes given below:
- AOnly (1)
- B(1) and (3)
- C(2) and (3)
- DOnly (3)
Show answer and explanation
Correct answer: (d) Only (3)
Explanation
Only statement (3) is correct.
- Under Article 110(2), a bill is not a Money Bill only because it provides for a tax by a local authority for local purposes. So statement (1) is wrong.
- Under Article 109, the Rajya Sabha (Council of States) can only make recommendations on a Money Bill, and the Lok Sabha need not accept them. So statement (2) is wrong.
- The Rajya Sabha must return a Money Bill within 14 days. If it does not, the bill is deemed passed by both Houses in the form the Lok Sabha passed it.