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Question

Which of the following commissions set up by the President of India decides the distribution of tax income between the Central and State Governments?

A
Central Law Commission
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B
Pay Commission for Govt Employees
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C
Administrative Reforms Commission
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D
Finance Commission
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Solution

The correct option is D Finance Commission

The Finance Commission of India was established by the President of India in the year 1951. The establishment took place under Article 280 of the country’s Constitution. This flattering commission decides the distribution of tax income between the Central and State Governments. Thus, it defines the financial relations between the Central and individual State Governments.

Thus, the correct answer is D.


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