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Institutions & Bodies

Finance Commission

A constitutional body (Article 280) constituted every five years to recommend the distribution of tax revenue between the Union and the states.

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On UPSC.wiki

Study materialPanchayati Raj System — Historical DevelopmentComprehensive study note on Panchayati Raj historical development — from ancient sabhas and the Balwant Rai Mehta Committee to the 73rd Constitutional Amendment (1993) — for UPSC Prelims, GS-2, and optional History. Current affairsTaxation and Other Laws (Amendment) Bill, 2026: Electronics Manufacturing, Digital Payments and Fund Management ReformsThe Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026 on 6 August 2026, replacing the Income-tax (Amendment) Ordinance, 2026. The Bill extends electronics manufacturing tax exemptions to 2041, delists data centre conditions, delinks fee-free digital payments from the Income-tax Act, and rationalises fund management and diamond trading tax provisions to attract foreign investment and support domestic manufacturing.

People also ask

Why is Finance Commission important for the UPSC exam?

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

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What is Finance Commission?

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

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What is the composition of Finance Commission?

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

Read more on this topic →
What are the functions of Finance Commission?

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

Read more on this topic →
Finance Commission: previous-year UPSC questions

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

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Finance Commission — quick revision for prelims

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

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Finance Commission vs Fundamental Rights: which is more important for UPSC?

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

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Difference between Finance Commission and Fundamental Rights

A State Finance Commission, constituted every five years, to recommend the principles governing devolution of taxes, duties, and grants from state governments to panchayats

Read more on this topic →

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Finance Commission — Institutions & Bodies for UPSC | UPSC.wiki | UPSC.wiki