What is the story about?
The government is expected to stick to February 1 for the Budget presentation, sources told CNBC-TV18, although an official announcement on the dates of the Budget Session of Parliament is still awaited.
The Union Budget for 2025 was presented on February 1, and the Budget for 2026, scheduled for the same date or a nearby one, will mark the finance minister’s ninth consecutive Budget presentation.
While the Budget speech lays out the government’s policy intent — including proposed changes in taxes, duties, surcharges and cess — these announcements do not automatically come into force.
The legal authority to implement tax proposals flows from theFinance Bill, which is introduced in the Lok Sabha immediately after the Budget presentation.
Markets, businesses and tax professionals closely track the Finance Bill to assess how Budget proposals translate into law, as the final impact often depends on the precise wording of the legislation.
What is required: Understanding the Finance Bill
The Finance Bill is what gives the Union Budget its legal backing.
While the Budget speech outlines the government’s intent — including proposed changes in taxes, duties and cess — these announcements do not carry the force of law on their own. The legal authority for implementing tax proposals comes through the Finance Bill.
The Finance Bill is introduced in the Lok Sabha immediately after the Budget presentation. Its role is straightforward but crucial. It amends existing tax laws and implements the tax rates, exemptions, surcharges and cess announced in the Budget. Until Parliament passes the Finance Bill, none of the proposed tax changes legally apply.
An often-overlooked procedural aspect is that the Finance Bill is classified as a Money Bill. This means the Rajya Sabha cannot amend it and can only make recommendations. The Lok Sabha has the final authority to accept or reject those suggestions.
Once Parliament approves the Finance Bill and the President gives assent, it becomes the Finance Act. This is the stage at which tax changes formally come into effect.
There is also a timing nuance. Some provisions take effect immediately, while others apply from April 1 of the next financial year, depending on how they are framed in the law.
In essence, the Budget outlines policy direction, while the Finance Bill translates that policy into enforceable law. This is why markets, companies and tax professionals closely track the language of the Finance Bill, not just the Budget speech.
The Union Budget for 2025 was presented on February 1, and the Budget for 2026, scheduled for the same date or a nearby one, will mark the finance minister’s ninth consecutive Budget presentation.
While the Budget speech lays out the government’s policy intent — including proposed changes in taxes, duties, surcharges and cess — these announcements do not automatically come into force.
The legal authority to implement tax proposals flows from theFinance Bill, which is introduced in the Lok Sabha immediately after the Budget presentation.
Markets, businesses and tax professionals closely track the Finance Bill to assess how Budget proposals translate into law, as the final impact often depends on the precise wording of the legislation.
What is required: Understanding the Finance Bill
The Finance Bill is what gives the Union Budget its legal backing.
While the Budget speech outlines the government’s intent — including proposed changes in taxes, duties and cess — these announcements do not carry the force of law on their own. The legal authority for implementing tax proposals comes through the Finance Bill.
The Finance Bill is introduced in the Lok Sabha immediately after the Budget presentation. Its role is straightforward but crucial. It amends existing tax laws and implements the tax rates, exemptions, surcharges and cess announced in the Budget. Until Parliament passes the Finance Bill, none of the proposed tax changes legally apply.
An often-overlooked procedural aspect is that the Finance Bill is classified as a Money Bill. This means the Rajya Sabha cannot amend it and can only make recommendations. The Lok Sabha has the final authority to accept or reject those suggestions.
Once Parliament approves the Finance Bill and the President gives assent, it becomes the Finance Act. This is the stage at which tax changes formally come into effect.
There is also a timing nuance. Some provisions take effect immediately, while others apply from April 1 of the next financial year, depending on how they are framed in the law.
In essence, the Budget outlines policy direction, while the Finance Bill translates that policy into enforceable law. This is why markets, companies and tax professionals closely track the language of the Finance Bill, not just the Budget speech.
