Multiple choice

The government of India constituted the New Finance Commission (13th). What is/are its major function(s)? 1. To decide the salary structure of the employees of the Central Government.

  1. To decide the distribution of the net proceeds of taxes between states and Central Govt.
  2. To decide the rate of Income Tax and other taxes collected by the Union Govt.

  1. Only 1

  2. Only 2

  3. Only 3

  4. All 1, 2 and 3

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The primary constitutional role of the Finance Commission is to recommend the distribution of tax proceeds between the Union and the States.

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