Fundamentals of Business Laws and Business Communication · Legislative Process in India

Types of Bills and Legislative Procedure in India

Updated 10 October 2026

A bill is a draft law placed before Parliament. Indian Parliament deals with ordinary, money, financial and constitutional amendment bills. Each is introduced, debated and passed by set rules, then gets the President's assent and becomes an Act. The President can also issue ordinances under Article 123 when Parliament is not in session.

Understand Types of Bills and Legislative Procedure

A bill is a proposed law. It is only a draft. It becomes an Act after both Houses pass it (with exceptions for money bills) and the President gives assent.

Parliament has two Houses: the Lok Sabha (House of the People) and the Rajya Sabha (Council of States). Ordinary bills and constitutional amendment bills can start in either House. Money bills and financial bills under Article 117(1) can start only in the Lok Sabha. The procedure is built around three readings: introduction (first reading), detailed discussion and clause-by-clause voting (second reading), and final voting (third reading).

Bills differ by subject. An ordinary bill covers general matters. A money bill deals only with matters such as taxes, borrowing and the Consolidated Fund of India (Article 110). A financial bill has some money provisions but is not purely about them. A constitutional amendment bill changes the Constitution under Article 368.

The key difference is the power of the Rajya Sabha. For an ordinary bill, both Houses have equal powers and a deadlock can be settled in a joint sitting under Article 108. For a money bill, the Rajya Sabha cannot reject or amend it. It may only recommend changes within 14 days of receipt, and the Lok Sabha may accept or reject them. If the Rajya Sabha does not return the bill within 14 days, it is deemed passed. After the Lok Sabha considers any recommendations, the bill goes to the President. A money bill is introduced only in the Lok Sabha and only on the President's recommendation. The Speaker certifies whether a bill is a money bill, and that decision is final.

Financial bills are of two kinds. A financial bill under Article 117(1) (Category I) contains Article 110 matters but is not a money bill. It can be introduced only in the Lok Sabha, on the President's recommendation, and is otherwise treated as an ordinary bill, so the Rajya Sabha has full powers over it. A financial bill under Article 117(3) (Category II) is one that, if enacted, would involve expenditure from the Consolidated Fund. It can start in either House, but a House cannot pass it unless the President has recommended its consideration.

An ordinance is a temporary law made by the President under Article 123 when Parliament is not in session and the President is satisfied that circumstances require immediate action. It has the same force as an Act. It must be laid before Parliament. It ceases to operate at the expiry of six weeks from the reassembly of Parliament, or earlier if both Houses pass resolutions disapproving it. If Parliament approves it, the matter is normally replaced by an Act.

Key formulas to remember

Ordinary bill: Either House → both Houses pass → President's assent → Act; Deadlock between Houses can be resolved by a joint sitting of Parliament under Article 108, presided over by the Speaker.
Money bill (Article 110): Only Lok Sabha, with President's recommendation → Lok Sabha passes → Rajya Sabha recommendations within 14 days → Lok Sabha accepts or rejects them → President's assent; The Rajya Sabha cannot reject or amend a money bill. It may only recommend changes within 14 days of receipt, and the Lok Sabha may accept or reject them. If the Rajya Sabha does not return the bill within 14 days, it is deemed passed.
Financial bill (Article 117): Art 117(1), Category I: only Lok Sabha, on President's recommendation, otherwise treated as an ordinary bill. Art 117(3), Category II: either House, President's recommendation needed for consideration; A Category I bill contains Article 110 matters but is not a money bill, and the Rajya Sabha has full powers over it. A Category II bill involves expenditure from the Consolidated Fund if enacted, and a House cannot pass it without the President's recommendation for its consideration.
Constitutional amendment (Article 368): Either House → special majority in each House → (ratification by half of States, if federal matters) → assent; Special majority: majority of total membership of the House and at least two-thirds of members present and voting. No joint sitting.
Ordinance (Article 123): President acts when Parliament is not in session and immediate action is needed → laid before Parliament → ceases six weeks after reassembly; It has the same force as an Act. It ceases at the expiry of six weeks from reassembly of Parliament, or earlier if both Houses pass resolutions disapproving it.

How to solve Types of Bills and Legislative Procedure questions

Use this method for any question on types of bills or the legislative procedure.

1Identify the type of bill from the key words: taxes or Consolidated Fund means money bill; changing the Constitution means Article 368; temporary law means ordinance.
2Note where the bill can start: money bill only in the Lok Sabha; ordinary and amendment bills in either House.
3Check the Rajya Sabha's role: equal power for ordinary bills, only recommendations for money bills.
4Check the majority needed: simple majority for ordinary and money bills. Amendments need the special majority under Article 368, which is different from a simple majority, plus ratification by half of the States for federal provisions.
5Check for special conditions such as President's recommendation, the Speaker's certificate or ratification by States.
6Finish with the President's assent and match it to the option given.
7Eliminate options that mix rules of different bills.

Quickest way: Match the bill to its one defining rule

When to use it: Use this for MCQs that ask who, where or what majority for a given bill.

Money bill: think Lok Sabha only, Rajya Sabha 14 days, Speaker certifies.
Ordinary bill: think both Houses equal, joint sitting for deadlock.
Amendment bill: think special majority, no joint sitting.
Ordinance: think Article 123, Parliament not in session, six weeks after reassembly.
Pick the option whose single rule matches the question and drop the rest.

Common mistakes in Types of Bills and Legislative Procedure

Saying a money bill can start in the Rajya Sabha.
Students assume all bills can start in either House.
Fix: Remember that a money bill is introduced only in the Lok Sabha.
Treating money bills and financial bills as the same.
Both involve money, so they look alike.
Fix: A money bill deals only with the matters listed in Article 110. A financial bill has money provisions along with other matters.
Thinking the Rajya Sabha can reject a money bill.
Students apply ordinary bill rules to every bill.
Fix: It can only recommend changes within 14 days, and the Lok Sabha may ignore them.
Saying an ordinance lasts six weeks from the date it is issued.
The six weeks figure is remembered without its starting point.
Fix: It ceases six weeks after Parliament reassembles, or earlier if both Houses pass resolutions disapproving it.
Believing a joint sitting can pass a constitutional amendment.
Students link joint sitting with all deadlocks.
Fix: A joint sitting under Article 108 applies to ordinary bills and financial bills. It does not apply to money bills or constitutional amendment bills. An amendment needs a special majority in each House.

Worked examples

Example 1

Which of the following statements about a money bill is correct? (A) It can be introduced in either House (B) The Rajya Sabha can reject it (C) It can be introduced only in the Lok Sabha (D) A joint sitting resolves a deadlock on it

Show the solution

A money bill is introduced only in the Lok Sabha, so A is wrong.
The Rajya Sabha cannot reject or amend a money bill. It can only recommend changes, so B is wrong.
Article 108 provides for a joint sitting on ordinary bills and financial bills. It does not apply to money bills or constitutional amendment bills, because the Lok Sabha's decision prevails on a money bill anyway. So D is wrong.
C matches the rule.

Answer: (C) It can be introduced only in the Lok Sabha.

Example 2

Explain the procedure for amending the Constitution under Article 368.

Show the solution

A bill to amend the Constitution can be introduced in either House of Parliament.
It must be passed in each House by a special majority: a majority of the total membership of that House and at least two-thirds of the members present and voting.
If the amendment affects federal matters, it must also be ratified by the legislatures of at least half of the States.
After this, the bill goes to the President, who gives assent, and the Constitution stands amended.
There is no provision for a joint sitting in this procedure.

Answer: A constitutional amendment bill passes each House by a special majority, is ratified by half of the States if it affects federal matters, and becomes law on the President's assent.

Exam tips

Learn the one-line rules for each bill type. MCQs usually test a single rule.
Watch the words 'only' and 'either' in options. They separate money bills from ordinary bills.
Remember the numbers: 14 days for the Rajya Sabha on a money bill and six weeks from reassembly for an ordinance.
Article numbers 110, 123 and 368 are commonly paired with their topics, so memorise them.
If two options look similar, check whether they mix money bill rules with ordinary bill rules.

Practice questions from Legislative Process in India

Types of Bills and Legislative Procedure: frequently asked questions

What is the difference between a money bill and a financial bill?

A money bill deals only with matters in Article 110, such as taxes and the Consolidated Fund. A financial bill has money provisions but also covers other matters. The Rajya Sabha has far less power over a money bill.

Can the President make laws through ordinances?

Yes, under Article 123, when Parliament is not in session and immediate action is needed. An ordinance has the same force as an Act. It must be laid before Parliament and ceases six weeks after reassembly, or earlier if both Houses pass resolutions disapproving it.

What majority is needed for a constitutional amendment?

A special majority is needed in each House. This means a majority of the total membership and at least two-thirds of those present and voting. Some amendments also need ratification by half of the States.

How does a bill become an Act?

It is introduced, discussed and voted on in the required Houses, usually in three readings. After both Houses pass it, the President gives assent and it becomes an Act.