Articles 109, 110 and 111 of the Constitution of India: Money Bills and Assent to Bills

Articles 109, 110 and 111 form part of the constitutional framework governing Parliamentary legislation. Article 109 prescribes the special procedure for Money Bills, Article 110 defines a Money Bill, and Article 111 deals with the President's assent to Bills passed by Parliament.

On this page

Article 109 - Special procedure in respect of Money Bills

Meaning: Article 109 gives the Lok Sabha a constitutionally dominant role in the passage of a Money Bill. A Money Bill cannot be introduced in the Rajya Sabha. After passage by the Lok Sabha, it is sent to the Rajya Sabha only for recommendations.

  1. (1) A Money Bill shall not be introduced in the Council of States.
  2. (2) After a Money Bill has been passed by the House of the People, it is transmitted to the Council of States for recommendations. The Council of States has fourteen days from receipt to return the Bill with its recommendations. The House of the People may accept or reject all or any of those recommendations.
  3. (3) If the House of the People accepts any recommendation, the Bill is deemed passed by both Houses with the recommended amendments that the House of the People accepted.
  4. (4) If the House of the People accepts none of the recommendations, the Bill is deemed passed by both Houses in the form in which the House of the People passed it.
  5. (5) If the Council of States does not return the Bill within fourteen days, it is deemed passed by both Houses at the end of that period in the form passed by the House of the People.

Practical effect: The Rajya Sabha may recommend changes to a Money Bill, but the Lok Sabha is not constitutionally required to accept them. The fourteen-day period is therefore central to the special procedure.

Article 110 - Definition of Money Bills

Meaning: Under Article 110(1), a Bill is a Money Bill only if it contains provisions dealing with all or any of the constitutionally specified matters. These concern Union taxation, borrowing and guarantees, the Consolidated Fund and Contingency Fund of India, appropriation, charged expenditure, public accounts and audit, and matters incidental to them.

  1. Article 110(1): A Bill is deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:
    • (a) imposition, abolition, remission, alteration or regulation of any tax;
    • (b) regulation of Government of India borrowing or guarantees, or amendment of law concerning its financial obligations;
    • (c) custody of the Consolidated Fund or Contingency Fund of India, and payments into or withdrawals from such Funds;
    • (d) appropriation of money out of the Consolidated Fund of India;
    • (e) declaring expenditure to be charged on the Consolidated Fund of India, or increasing such expenditure;
    • (f) receipt of money on account of the Consolidated Fund of India or the public account of India, custody or issue of such money, or audit of Union or State accounts; or
    • (g) any matter incidental to matters in sub-clauses (a) to (f).
  2. Article 110(2): A Bill does not become a Money Bill merely because it imposes fines or other pecuniary penalties, demands fees for licences or services, or deals with local taxation by a local authority or body for local purposes.
  3. Article 110(3): If a question arises whether a Bill is a Money Bill, the Constitution states that the decision of the Speaker of the House of the People shall be final.
  4. Article 110(4): Every Money Bill sent to the Council of States under Article 109 and presented to the President under Article 111 must carry the Speaker's signed certificate that it is a Money Bill.

Current judicial context: The Supreme Court has referred broader questions concerning the scope of Article 110 and Money Bill certification to a larger Bench. The Court has also recorded in later proceedings that this larger-bench issue remained pending. Readers should therefore distinguish the constitutional text from questions concerning the judicial review and scope of Money Bill certification.

Article 111 - Assent to Bills

Meaning: Article 111 governs the stage after a Bill has been passed by Parliament. The Bill is presented to the President, who may assent or withhold assent. The proviso creates a reconsideration mechanism for a Bill that is not a Money Bill.

Where the Bill is not a Money Bill, the President may return it to the Houses with a message requesting reconsideration of the Bill or specified provisions and may recommend amendments. If Parliament passes the returned Bill again, with or without amendment, and presents it again, the President shall not withhold assent.

Important distinction: Article 111 does not authorize the President to return a Money Bill for reconsideration under its proviso.

Key constitutional points

  • A Money Bill can originate only in the Lok Sabha.
  • The Rajya Sabha has fourteen days to return a Money Bill with recommendations.
  • The Lok Sabha may accept or reject those recommendations.
  • The definition in Article 110(1) uses the limiting expression "only provisions dealing with" the listed matters.
  • The Speaker's Money Bill certificate is required when the Bill goes to the Rajya Sabha and when it is presented to the President.
  • Article 111 permits return for reconsideration only where the Bill is not a Money Bill.

Official resources

For the authoritative constitutional text, refer to the India Code portal and the Legislative Department - Constitution of India. For judgments and orders concerning constitutional interpretation, use the Supreme Court of India and its official judgment search facilities.