38. Taxes on Income: Under the present arrangement the provinces receive 50 per cent. of the net proceeds of income-tax, except what is attributable to Chief Commissioners’ Provinces and taxes on Federal emoluments. The net proceeds of the Corporation Tax are also excluded for the purpose of the sharing. Subject to what we have said in paragraph 49 regarding tax on agricultural income, we recommend that, while the net proceeds attributable to Chief Commissioners’ Provinces should be retained wholly by the Centre, the other reservations should go, and that the provinces should get not Jess than 60 per cent. of the net proceeds of all income-tax including the net proceeds of Corporation Tax, and taxes on Federal emoluments. For the purpose of the division, income-tax will mean any levy made under the authority of the entry “Taxes on Income” in the Federal Legislative List.