Consider the following statements regarding to lsquo Finance Commission rsquo It is a constitutional...........

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Consider the following statements regarding to ‘Finance Commission’

It is a constitutional body that determines the method for distributing the tax proceeds between the Centre and states, and among the states.
The Parliament is required to constitute a Finance Commission at an interval of five years or earlier.

Select the correct statement.

1 only

2 only

Both

None

The Finance Commission is a constitutional body, that determines the method and formula for distributing the tax proceeds between the Centre and states, and among the states as per the constitutional arrangement and present requirements.
Under Article 280 of the Constitution, the President of India is required to constitute a Finance Commission at an interval of five years or earlier.
The 15th Finance Commission was constituted by the President of India in November 2017, under the chairmanship of NK Singh. Its recommendations will cover a period of five years from April 2020 to March 2025.