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Consider the following statements in the context of the Finance Commission:
1. It is a constitutional body formed under Article 280 of the constitution.
2. The constitution specifies the qualifications of members of the commission.
3. Finance Commission is the final authority to certify the net proceeds of the taxes.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 and 3 only
  • c)
    1 and 2 only
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements in the context of the Finance Commis...
Explanation:

- Statement 1: It is a constitutional body formed under Article 280 of the constitution.
The first statement is correct. The Finance Commission is a constitutional body that is formed under Article 280 of the Indian Constitution. It is responsible for recommending the distribution of tax revenues between the central and state governments.
- Statement 2: The constitution specifies the qualifications of members of the commission.
The second statement is incorrect. The qualifications of members of the Finance Commission are not specified in the Constitution. However, members are typically experts in finance, economics, or public administration.
- Statement 3: Finance Commission is the final authority to certify the net proceeds of the taxes.
The third statement is incorrect. The Finance Commission does not have the final authority to certify the net proceeds of taxes. Its main role is to recommend the distribution of tax revenues between the central and state governments based on various criteria.
Therefore, the correct answer is option A) 1 only.
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