Kalpana Kalpana (Editor)

The Sixth Finance Commission

Updated on
Edit
Like
Comment
Share on FacebookTweet on TwitterShare on LinkedInShare on Reddit

The Sixth Finance Commission of India was incorporated in the year 1973 consisting of Shri K. Brahmananda Reddy as the chairman and the following four other Members, namely:-

  • Shri Justice Syed Sadat Abal Masud
  • Dr. B.S. Minhas
  • Dr. I.S. Gulati
  • Shri G. Ramachandran, Member Secretary
  • Recommendations

  • The States demanded the inclusion of corporation tax into the divisible income tax and 1005 allocation of the net proceeds to them. The commission expressed that such inclusion was constitutionally forbidden but it can be reviewed by National Development Council
  • States share was increased from 75% to 80% due to the decrease in the divisible pool as the arrears of the advance tax collection had been cleared
  • In view of the increasing integration of the national economy and for eliminating the regional imbalances the contribution factor was kept at 10% in the distribution of share amongst the states. The distribution inter se the states should be on the basis of fixed percentages
  • Out of the net proceeds of the income tax, 1.79% should be allocated to the Union Territories
  • References

    The Sixth Finance Commission Wikipedia