The reduced tax rates and introduction of incentives to boost
economic growth were approved by the President through the
promulgation of Ordinance (Taxation Laws (Amendment) Ordinance
2019) under Article 123 of the Constitution of India. Since an
ordinance is only a temporary executive measure, which cannot
replace the power and function of the Parliamentary process, it had
to be introduced as a bill (by presenting the same before both
Houses of the Parliament) for its consideration.
Accordingly, the Hon'ble Finance Minister of India Ms.
Nirmala Sitharaman presented the Taxation Laws (Amendment) Bill
(Bill) on 25 November 2019 to replace the Income-tax Ordinance
(Ordinance) promulgated in September 2019. On 3 December 2019, the
Bill has been approved in the Lok Sabha with few changes. The Rajya
Sabha has passed the bill on 5 December 2019. The bill shall attain
finality after receiving President's assent.
