Financial relations

<h2 style='margin:0in;font-family:Calibri;font-size:14.0pt;color:#2E75B5'
lang=en-US id="Mutualimmunizationoftax.But">Mutual immunization of tax. But</h2>

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<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>As per constitution, </span></li>
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margin-top:0in;margin-bottom:0in;font-family:Calibri;font-size:11.0pt;
font-weight:normal;font-style:normal'>
<li value=1 style='margin-top:0;margin-bottom:0;vertical-align:middle'
lang=en-US><span style='font-family:Calibri;font-size:11.0pt;font-weight:
normal;font-style:normal;font-family:Calibri;font-size:11.0pt'>mutual tax
immunization provided except for State/Central Corporations/Companies</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt;background:yellow;mso-highlight:
yellow'>Local authorities with in a state are not exempted from Central
taxation</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>However, Parliament is
empowered to remove this ban (i or ii)</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Parliament is also empowered
to tax commercial operations of a state (general/specific operation)</span></li>
</ol>
</ul>

<p style='margin:0in;margin-left:.375in;font-family:Calibri;font-size:11.0pt'
lang=en-US>&nbsp;</p>

<p style='margin:0in;margin-left:.375in;font-family:Calibri;font-size:11.0pt'
lang=en-US>More power to Parliament</p>

<p style='margin:0in;margin-left:.375in;font-family:Calibri;font-size:11.0pt'
lang=en-US>&nbsp;</p>

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background-color:yellow;vertical-align:top;width:2.7576in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
</td>
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<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Can
Centre Tax?</p>
</td>
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background-color:yellow;vertical-align:top;width:2.6375in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Can
State Tax?</p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.7576in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Central
Govt</p>
</td>
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vertical-align:top;width:3.4708in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>No</p>
</td>
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vertical-align:top;width:2.6375in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold'>No But if Parliament provides</span></p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.777in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Central
Govt companies/corporations</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:3.4708in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Yes</p>
</td>
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vertical-align:top;width:2.7694in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Yes
since they are separate legal entity</p>
</td>
</tr>
<tr>
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vertical-align:top;width:2.7576in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>State
Govt</p>
</td>
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vertical-align:top;width:3.4902in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold'>No</span> but Parliament can tax commercial
functions</p>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Excise
and Customs can be levied</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.618in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>No</p>
</td>
</tr>
<tr>
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vertical-align:top;width:2.7576in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>State
Govt companies/corporations</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:3.4708in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Yes</p>
</td>
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vertical-align:top;width:2.6375in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Yes</p>
</td>
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<tr>
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vertical-align:top;width:2.7576in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Local
Govt</p>
</td>
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vertical-align:top;width:3.4708in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Yes</p>
</td>
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vertical-align:top;width:2.6375in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
</td>
</tr>
</table>

</div>

<p style='margin:0in;margin-left:.375in;font-family:Calibri;font-size:11.0pt'
lang=en-US>&nbsp;</p>

<p style='margin:0in;margin-left:.375in;font-family:Calibri;font-size:11.0pt'
lang=en-US>&nbsp;</p>

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<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>But As per Supreme court
advisory in 1963, </span></li>
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margin-top:0in;margin-bottom:0in'>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Center can impose customs
tax on imported/exported by a state (</span><span style='text-decoration:
underline;font-family:Calibri;font-size:11.0pt;background:yellow;
mso-highlight:yellow'>own purpose</span><span style='font-family:Calibri;
font-size:11.0pt'>) and excise duty on goods produced by a state(</span><span
style='font-family:Calibri;font-size:11.0pt;background:yellow;mso-highlight:
yellow'>own produce</span><span style='font-family:Calibri;font-size:
11.0pt'>)</span></li>
</ul>
</ul>

<p style='margin:0in;font-family:Calibri;font-size:11.0pt' lang=en-US>&nbsp;</p>

<h2 style='margin:0in;font-family:Calibri;font-size:14.0pt;color:#2E75B5'
lang=en-US id="Loans">Loans</h2>

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margin-top:0in;margin-bottom:0in'>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>As per constitution</span></li>
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margin-top:0in;margin-bottom:0in'>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Center can raise loans
within/outside upon security of Consolidated Fund of </span><span
style='font-family:Calibri;font-size:11.0pt;background:yellow;mso-highlight:
yellow'>India </span><span style='font-family:Calibri;font-size:11.0pt'>within
the limits prescribed by </span><span style='font-weight:bold;font-family:
Calibri;font-size:11.0pt'>Parliament </span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>State can borrow only within
country upon security of Consolidated Fund of </span><span
style='font-family:Calibri;font-size:11.0pt;background:yellow;mso-highlight:
yellow'>State</span><span style='font-family:Calibri;font-size:11.0pt'>
and </span><span style='font-weight:bold;font-family:Calibri;font-size:
11.0pt'>not from abroad</span><span style='font-family:Calibri;
font-size:11.0pt'> within the limits prescribed by State Legislature</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Centre may give loans to
state or give guarantee to the loans raised by state with the approval of
Centre </span></li>
</ul>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>But As per 12th Finance
commission recommendation,</span></li>
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margin-top:0in;margin-bottom:0in'>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Centre facilitates </span><span
style='font-weight:bold;font-family:Calibri;font-size:11.0pt'>State Govts
in raising loans from abroad upon securities of Consolidated Fund of </span><span
style='font-weight:bold;font-family:Calibri;font-size:11.0pt;background:
yellow;mso-highlight:yellow'>India</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>However payment of interests
and risk is the onus of State Gov</span></li>
</ul>
</ul>

<p style='margin:0in;margin-left:.75in;font-family:Calibri;font-size:11.0pt'
lang=en-US>&nbsp;</p>

<h2 style='margin:0in;font-family:Calibri;font-size:14.0pt;color:#2E75B5'
lang=en-US id="TaxRevenues">Tax Revenues</h2>

<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>

<div style='direction:ltr'>

<table border=1 cellpadding=0 cellspacing=0 valign=top style='direction:ltr;
border-collapse:collapse;border-style:solid;border-color:#A3A3A3;border-width:
1pt' title="" summary="">
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='background:yellow;mso-highlight:yellow'>246A</span></p>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>New
article post GST</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7305in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Parliament
and State Legislature has power to make laws w.r.t goods and service tax
imposed by Union and by State</p>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Parliament
has exclusive power to tax inter-state trade/commerce</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Ex:
CGST, SGST </p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.0881in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Concurrent
taxation power (levy) only w.r.t goods and services</p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>268</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7111in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Taxes
levied by Centre but collected and appropriated by States</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Ex:
Excise duties on medicine and toilet preparations containing alcohol and
narcotics</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.977in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>268A</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7111in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold'>Service Tax levied by Centre but collected and
appropriated by States and Centre</span></p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Ex:
Service Tax</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.977in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold;background:yellow;mso-highlight:yellow'>Deleted Post
GST</span></p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>269</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7111in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Taxes
levied and collected by Centre but appropriated by States</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Ex:
Central Sales tax</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.0881in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold'>Principles decided by Parliament</span></p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>269A</p>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>New
article post GST</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7111in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>IGST
collected will be shared b/w Union and States in the manner provided by
Parliament on recommendations of GST council</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>IGST
Tax</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.0881in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold'>Parliament determines on recommendation of GST
council</span></p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>270</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7111in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Taxes
levied and collected by Centre but distributed b/w centre and states</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Ex:
Income Tax</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.0881in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold'>President decides on recommendation of FC</span></p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>271</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7111in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Surcharges
on certain taxes and duties for purposes of the Centre</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.0881in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='font-weight:bold'>Goes to Centre exclusively</span></p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.0645in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:4.7111in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Taxes
levied, collected and retained by the states</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.9083in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Ex:
Land Revenue, Professional Tax</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:1.977in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>
</td>
</tr>
</table>

</div>

<p style='margin:0in;font-family:Calibri;font-size:11.0pt' lang=en-US>&nbsp;</p>

<p style='margin:0in;font-family:Calibri;font-size:11.0pt' lang=en-US>&nbsp;</p>

<ul type=disc style='margin-left:.375in;direction:ltr;unicode-bidi:embed;
margin-top:0in;margin-bottom:0in'>
<li style='color:#000000;background:#00CCFF;mso-highlight:#00CCFF;margin-top:
0;margin-bottom:0;vertical-align:middle' lang=en-US><img

width=16 height=16 alt=Tricky src="https://static.wixstatic.com/media/760013_06c2a583c0c34b17b47620d978f66ccf~mv2.png">&nbsp;<span style='font-family:Calibri;
font-size:11.0pt'>Logic:</span></li>
<ul type=circle style='margin-left:.375in;direction:ltr;unicode-bidi:embed;
margin-top:0in;margin-bottom:0in'>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>If collected by centre,
appropriated by States- Parliament decides</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>If collected by centre and
distributed b/w Centre and States - President decides on recommendation
of FC</span></li>
</ul>
</ul>

<p style='margin:0in;font-family:Calibri;font-size:11.0pt' lang=en-US>&nbsp;</p>

<h2 style='margin:0in;font-family:Calibri;font-size:14.0pt;color:#2E75B5'
lang=en-US id="NonTaxRevenues">Non Tax Revenues</h2>

<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>

<div style='direction:ltr'>

<table border=1 cellpadding=0 cellspacing=0 valign=top style='direction:ltr;
border-collapse:collapse;border-style:solid;border-color:#A3A3A3;border-width:
1pt;margin-left:.3333in' title="" summary="">
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:.6868in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Centre</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:7.2631in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>Posts
&amp; Telegraph, Railways, Banking, Broadcasting, Coinage &amp; Currency,
Central PSUs, escheat and lapse</p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:.6673in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>State</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:7.2131in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US><span
style='background:yellow;mso-highlight:yellow'>Irrigation, Forests,
Fisheries,</span> State PSUs, escheat and lapse</p>
</td>
</tr>
</table>

</div>

<p style='margin:0in;font-family:"Nirmala UI";font-size:12.0pt' lang=en-US>&nbsp;</p>

<p style='margin:0in;font-family:Calibri;font-size:11.0pt' lang=en-US>&nbsp;</p>

<ul type=disc style='margin-left:.375in;direction:ltr;unicode-bidi:embed;
margin-top:0in;margin-bottom:0in'>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-weight:bold;font-family:Calibri;font-size:11.0pt'>Statutory
grants to the needy states are </span><span style='font-weight:bold;
font-family:Calibri;font-size:11.0pt;background:yellow;mso-highlight:yellow'>charged</span><span
style='font-weight:bold;font-family:Calibri;font-size:11.0pt'> on the
Consolidated Fund of India</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Grants in lieu of export
duties on Jute and Jute products to states of Assam, Bihar, Orissa, WB are
</span><span style='font-weight:bold;font-family:Calibri;font-size:11.0pt;
background:yellow;mso-highlight:yellow'>charged</span><span
style='font-family:Calibri;font-size:11.0pt'> on CFI [valid till 1960
recommended by FC]</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Central loans to states are </span><span
style='font-weight:bold;font-family:Calibri;font-size:11.0pt;background:
yellow;mso-highlight:yellow'>charged</span><span style='font-family:Calibri;
font-size:11.0pt'> on CFI</span></li>
<li style='margin-top:0;margin-bottom:0;vertical-align:middle' lang=en-US><span
style='font-family:Calibri;font-size:11.0pt'>Any levy of surcharge on any
tax/duty has to be introduced in Parliament only with prior recommendation
of the President</span></li>
</ul>

<p style='margin:0in;font-family:Calibri;font-size:11.0pt' lang=en-US>&nbsp;</p>

<h3 style='margin:0in;font-family:Calibri;font-size:12.0pt;color:#5B9BD5'
lang=en-US id="dummy">&nbsp;</h3>

<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>

<h2 style='margin:0in;font-family:Calibri;font-size:14.0pt;color:#2E75B5'
lang=en-US id="DuringEmergencies">During Emergencies</h2>

<p style='margin:0in;font-family:Calibri;font-size:12.0pt' lang=en-US>&nbsp;</p>

<div style='direction:ltr'>

<table border=1 cellpadding=0 cellspacing=0 valign=top style='direction:ltr;
border-collapse:collapse;border-style:solid;border-color:#A3A3A3;border-width:
1pt' title="" summary="">
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.0215in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:"Nirmala UI";font-size:12.0pt' lang=en-US>National
Emergency 352</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:8.2236in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:"Nirmala UI";font-size:12.0pt' lang=en-US>President
can modify revenue distribution b/w Centre and States</p>
</td>
</tr>
<tr>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:2.0215in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:"Nirmala UI";font-size:12.0pt' lang=en-US>Financial
Emergency 360</p>
</td>
<td style='border-style:solid;border-color:#A3A3A3;border-width:1pt;
vertical-align:top;width:8.293in;padding:2.0pt 3.0pt 2.0pt 3.0pt'>
<p style='margin:0in;font-family:"Nirmala UI";font-size:12.0pt' lang=en-US>Centre
can give directions to states and can even reserve all money/financial bills
for consideration of President</p>
</td>
</tr>
</table>