Question:medium

Which statutory body determines the criteria for tax devolution from the divisible pool to the States in India?

Show Hint

Know which body handles tax sharing between states and center.
Updated On: Feb 11, 2026
  • Reserve Bank of India
  • Niti Aayog
  • Finance Commission of India
  • Ministry of Commerce
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The Correct Option is C

Solution and Explanation

The *Finance Commission of India*, a constitutional body, establishes the criteria for distributing taxes from the divisible pool to the states.

It ensures states receive their allocated resources from the central government.

Hence, the correct answer is (c).

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