Must Know Facts For IAS Aspirant About Finance Commission Of India
Post on 09,December 2015   4:00 AM
By - PolyEyes Staff
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What Does Finance Commission Do : Finance commission (FC) every five years to record how returns from central taxes should be shared between centre and states. 

FC deals only with the revenue collected through taxes by centre- corporation tax, income tax, customs, excise and service tax. 

How Does FC Divide Resource Between States: The formula used by the latest FC takes into consideration population, demographic changes, area, a state’s per capita income and its share in forest cover. 

  • The base year is taken as 1971.
  • Critical factor in determining the state share is “INCOME DISTANCE” 

INCOME DISTANCE: it is the measure of how far the state’s per capita gross state domestic product (GSDP) is from top state, the higher will be the share of central taxes. 

Legal Status of Finance Commission: FC is appointed by president of India under the article of 280 of the constitution. It has five members including a chairperson. Its recommendations are implemented for five years.

The recommendations of union taxes and duties distributions are implemented by the order of president while other orders (recommendations) like shaning of petradium profit, debt relief, mode of central assistance, etc. are implemented by executive orders.


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Dear, sir when cdpo exam is held and plz give me syllabus of cdpo exam in full details.

by Puja Kumari

My score is 224 and I am a General candidate. So what would I expect?

by Afroz

As per the Polyeyes prediction, the difference of marks between UR and SC is very small .A gap ofonly 10 marks or 5 questions.In the 5th JPSC PT exam,his gap was of 34 marks or 17 questions without any change in SC seats and number of candidates appeared.

Cut off for UR should be 190-204 marks.

by Rahul

The cut-off will be between 225-235 for unreserved category.

by Cs

sir,

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by Mr. MANJESH KUMAR

ur ka cut off 190-210 tak jayega.

by SUBHASH

Ur 6th jpsc cutoff min 200 max 205.

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