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
Recommendationsedit
The commission recommended that:
The share of the Union Territories would not be determined on the grounds used for state share but it would be decided on the basis of population 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 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:-