The Sixth Finance Commission of India was incorporated in the year 1973 consisting of Shri K. Brahmananda Reddy as the chairman.

Members

The members of the Commission were: * Shri K. Brahmananda Reddy, Chairman * 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 A corporate tax, also called corporation tax or company tax, is a direct tax imposed on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed a ...

into the divisible

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable 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 Arrears (or arrearage) is a legal term for the part of a debt that is overdue after missing one or more required payments. The amount of the arrears is the amount accrued from the date on which the first missed payment was due. The term is usually ...

of the advance

tax collection A revenue service, revenue agency or taxation authority is a government agency responsible for the intake of government revenue, including taxes and sometimes non-tax revenue. Depending on the jurisdiction, revenue services may be charged with ...

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

Further references

* * Finance Commission of India 1973 establishments in India {{Finance Commission of India