Explanation:

All statements are correct.

• A Finance Bill is a Money Bill as defined in Article 110 of the Constitution. Whereas a Financial Bill is an ordinary bill as it apart from dealing with money matters also deals with non-money matters.

Financial Bill

• A Finance Bill deals with the proposals of the government for levy of new taxes, modification of the existing tax structure or continuance of the existing tax structure beyond the period approved by Parliament are submitted to Parliament through this bill. So, it is introduced as a part of the Annual Financial Statement (i.e. Budget) under Article 112.

• The Finance Bill is accompanied by a Memorandum containing explanations of the provisions included in it. The Finance Bill can be introduced only in Lok Sabha.

• However, the Rajya Sabha can only recommend amendments in the Bill. The bill has to be passed by the Parliament within 75 days of its introduction.

• Financial bills, which are also concerned with financial matters (but are different from money bills). A financial bill (I) is governed by the same legislative procedure applicable to an ordinary bill. Hence, it can be either rejected or amended by the Rajya Sabha (except that an amendment other than for reduction or abolition of a tax cannot be moved in either House without the recommendation of the President i.e., the recommendation of the President is not required for moving an amendment making provision for the reduction or abolition of a tax). In case of a disagreement between the two Houses over such a bill, the President can summon a joint sitting of the two Houses to resolve the deadlock. Joint sitting is not available for the Money Bill.

Why in News?

• The Finance Bill 2024 was passed in the Lok Sabha on Wednesday (August 7, 2024) with an amendment relaxing the recently introduced new capital gains tax on real estate. It allows tax payers an option to switch to a new lower tax rate or stick to the old regime that had higher rate with indexation benefits.

Hence option 3rd is correct.