100. (1) No major change to be made in the list of taxes in Federal Legislative List as recommended by the Union Powers Committee. (Para. 30)

(2) The limit of Rs. 50 to be raised to Rs. 250 for taxes on professions etc. levied by local bodies. (Para. 30)

(3) An entry to be made in the Federal Legislative List of a new item “Stock Exchanges and Futures Markets” etc. (Para. 30)

(4) A few minor changes of a drafting nature to be made in the list of taxes in the Provincial Legislative List; and no new items for insertion in the Provincial Legislative List. (Paras. 31-33)

(5) The Centre to retain the whole of the net proceeds of the following taxes, viz. (a) Duties of Customs including Export Duties; (b) tax on capital value of assets, etc.; (c) taxes on Railway fares and freights; and (d) Central Excises other than on tobacco. (Para. 34)

(6) The grant of fixed assignments for a period of years to the jute-growing provinces to make up for their loss of revenue. (Paras. 35-36)

(7) The net proceeds of the following taxes to be shared with the Provincial Governments, viz. (1) Income-tax including Corporation Tax; (2) Central Excise on tobacco; (3) Estate and Succession Duties. (Paras. 38-42)

(8) The suggestion that the Centre should be allotted only the excises on specified commodities, not accepted. (Para. 41)

(9) Federal Stamp Duties and terminal taxes on goods, etc. to be administered centrally, but wholly for the benefit of the provinces. (Paras.43 and 44)

(10) Larger fixed subventions than now, necessary for Assam and Orissa, and subventions for limited periods for East Punjab and West Bengal, but no precise figures recommended for lack of data. (Paras. 45 and 46)

(11) Grants-in-aid on the Australian model not favoured. (Para. 48)

(12) Merging the tax on agricultural income in the Central Income-tax and similarly the Estate and Succession Duties on agricultural property in the similar duties on property in general to be examined in consultation with Provincial Governments and transfers made from the Provincial List of subjects, if necessary. (Para. 49)

(13) Not less than 60 per cent of the net proceeds of Income-tax including Corporation Tax and the tax on Federal emoluments, to be divided between provinces in the following manner: 20 per cent. on the basis of population, 35 per cent. on the basis of collection and 5 per cent as an adjusting factor to mitigate hardship. (Paras. 55 and 56)

(14) Not less than 50 per cent. of the net proceeds of the excise on tobacco to be divided between provinces on the basis of estimated consumption. (Para. 57)

(15) Not less than 60 per cent. of the net proceeds from Succession and Estate Duties to be divided between the provinces on the following basis:

Duties in respect of real property on the basis of allocation of the property, and of the balance, three-fourths on the basis of the residence of the deceased and one-fourth on the basis of population. (Para. 58)

(16) Net effect of the recommendations, to transfer annually a sum of the order of Rs. 30 crores from the Centre to the provinces. (Para. 59)

(17) A Finance Commission with a High Court Judge or ex-High Court Judge as Chairman and four other members to be entrusted with the following functions: viz. (a) allocation between the provinces of their shares of centrally administered taxes assigned to them; (b) to consider applications for grants-in-aid for provinces and report thereon; (c) to consider and report on other matters referred to it by the President. (Paras.65-67)

(18) The Commission to review the position every five years, or, in special circumstances, earlier. (Para. 70)

(19) A tax levied by the Centre under its residuary powers, not to ensure to the benefit of a non-acceding State unless it agrees to accede to the Centre in respect of that subject. (Para. 72)

(20) Trading operations of units, as of local bodies, whether carried on within or without their jurisdiction, to be liable to Central Income-tax or a contribution in lieu, but quasi-trading operations incidental to the normal functions of Government not to be taxed. (Para. 74)

(21) The President to be empowered in an emergency to suspend or vary the normal financial provisions in the Constitution. (Para. 75)

(22) A few minor changes suggested in regard to the procedure in financial matters. (Para. 77)

(23) No change to be made in respect of borrowing powers of units. (Paras. 81-82)

(24) Early arrangement to be made for the preparation of regular budgets and the maintenance of appropriate accounts and audit by all acceding States. (Para. 86)

(25) States gradually to develop all the taxes in the Provincial Legislative List and correspondingly give up taxes in the Federal List. (Para. 87)

(26) Maritime customs and excises in States to be taken over by the Centre, the States being compensated therefor, if necessary. (Paras. 89 and 90)

(27) The Indian Income-tax Act to be applied to all the federating States, and 75 per cent. of the net proceeds attributable to the States to be divided between them. (Para. 91)

(28) A States Commission to be set up with five members with wide knowledge of the financial administration of Provincial, Federal or State Governments. (Para. 94)

(29) The States Commission to examine the privileges and immunities etc. of States and to suggest suitable compensation for the extinction of these rights and liabilities. (Para. 94)

(30) States which do not come into the arrangements to pay a contribution to the Centre to be determined by the States Commission. (Para. 95)

(31) The interim constitutional arrangements with the States to be flexible and small States to be grouped together. (Paras. 96 and 97)