THE CONSTITUTION (DISTRIBUTION OF REVENUES) ORDER, 1950

C.O. 12, dated the 13th April, 1950

In exercise of the powers conferred by articles 270, 273 and 275 of the Constitution of India and of all other powers enabling him in that behalf, the President is pleased to make the following Order, namely :--

1. This Order may be called the Constitution (Distribution of Revenues) Order, 1950.¹

2. The General Clauses Act, 1897, applies for the interpretation of this Order as it applies for the interpretation of a Central Act.

3. (1) For the purposes of clause (2) of article 270, one per cent. of so much of the net proceeds of taxes on income as does not represent the net proceeds of taxes payable in respect of Union emoluments shall be deemed to represent the proceeds attributable to Part C States in the financial year commencing on the first day of April, 1950.

(2) The percentage of the net proceeds of the taxes on income, except in so far as those proceeds represent proceeds attributable to Part C States or to taxes payable in respect of Union emoluments, which is to be assigned to Part A States and Part B States under the said clause in the said financial year shall be fifty per cent.

(3) The sums falling to be distributed under the said clause in the said financial year among Part A States and Part B States (hereinafter referred to as "the said sums" ) shall be distributed in the following manner, namely :--

(a) each Part B State shall be entitled to receive out of the said sums a sum equivalent to fifty per cent, of the net proceeds of the taxes on income other than agricultural income levied and collected by the Government of India in that State in the said financial year :

Provided that if any such State is entitled to receive in the said financial year any grant of financial assistance by the Government of India by virtue of an agreement under clause (1) of article 278, then the sum payable to that State under this sub-paragraph shall be reduced by the amount of the said grant;

(b) each Part A State shall be entitled to receive out of the said sums a sum equivalent to fifty per cent. of the net proceeds of the taxes on income other than agricultural income levied and collected by the Government of India in the merged territories within that State in the said financial year and

(c) after deducting the sums referred to in sub-paragraphs (a) and (b) from the said sums, the balance shall be distributed as follows :--

4. In accordance with the provisions of clause (1) of article. 273 and clause (1) of article 275, there shall be charged on the Consolidated Fund of India in the said financial year as grants-in-aid of the revenues of each of the States specified below the sum or sums specified against it in addition to any sum payable to that State under. either of the provisos to clause (1) of article 2.75 :--

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1. T his order was repealed by C. O. 46.