The Finance Act is an act of Parliament by which the Union Government of India gives effects to the financial proposals given by the government for the following financial year. The finance bill is introduced to the Lower House after the Union Budget is presented by the Finance Minister. Once the proposals are passed by the parliament and assented to by the President, it becomes the Finance Act of that year. There is a new Finance Act every financial year which makes this act an act that renews itself every year. This act basically is an umbrella act that includes all the government’s financial policies.