The Tenth Finance Commission of India was incorporated in the year 1992 consisting of Shri Krishna Chandra Pant as the chairman.

Members

The members of the commission were: * Shri Krishna Chandra Pant, Chairman * Dr.

Debi Prasad Pal Debi Prasad Pal (1 November 1927 – 14 May 2021) was a Senior Advocate practicing in the Supreme Court of India and High Courts of India. He was a former Minister of State for Finance, a former Judge of Calcutta High Court and a three-time for ...

, Member of

Parliament In modern politics and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: Representation (politics), representing the Election#Suffrage, electorate, making laws, and overseeing ...

* Shri B.P.R. Vithal * Dr.

C. Rangarajan Chakravarthi Rangarajan (born 1932) is an Indian economist, a former Member of Parliament and 19th governor of the Reserve Bank of India. He is the former chairman of the Prime Minister's Economic Advisory Council; he resigned the day the UPA ...

, resigned on 21 December 1992 * Shri M.C. Gupta, Member Secretary, relinquished charge on 31 January 1994 * Shri Manu R. Shroff, In place of Dr. C. Rangarajan on 14 October 1993 * Shri Arun Sinha, Member Secretary (in place of M.C. Gupta) on 1 March 1994

Recommendations

The commission recommended that: * The share of the

Union Territories Among the states and union territories of India, a Union Territory (UT) is a region that is directly governed by the central government of India, as opposed to the states, which have their own state government systems. Unlike states, Union Ter ...

would not be determined on the grounds used for state share but it would be decided on the basis of

population Population is a set of humans or other organisms in a given region or area. Governments conduct a census to quantify the resident population size within a given jurisdiction. The term is also applied to non-human animals, microorganisms, and pl ...

solely. The percentage would be 0.927% for the years 1995–2000. * Out of the total income obtained from certain central taxes and duties, 29% should go to the states. This is known as the 'Alternative Scheme of Devolution' and came into effect retrospectively from April 1, 1996. * The proceeds from the ‘penalties’ and ‘interest recovered’ under the miscellaneous receipts should be included in to 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 ...

pool as recommended by Ninth Commission with effect from 1 April 1995. * The share of the net proceeds would be 77.5% for five years. * The commission dropped the collection factor as the criterion for distribution * The distribution of the net proceeds among states would be as follows:- ** 20% on the basis of population of 1971 ** 60% on basis of distance of

per capita income Per capita income (PCI) or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. In many countries, per capita income is determined using regular population surveys, such ...

** 5% on basis of area adjusted ** 5% on basis of infrastructure index ** 10% on basis of tax effort

References

Further References

* * Finance Commission of India 1995 establishments in India {{India-law-stub