(FE)
Fifteenth Finance Commission chairman NK Singh on Monday said the newly-created Union Territory of Jammu and Kashmir (J&K) won’t have a share in devolution of Central taxes as states do, but will receive only grants like other UTs, starting FY21.
The Commission, whose award period will be six years till March 31, 2026 after a recent one-year extension, recently submitted a report for FY21 to the government and this is expected to be a factor in the upcoming Union Budget for the year. “Constitutionally, there will be an infirmity if non-states get share of net proceeds of taxes which are admissible only to states. There is legal opinion from luminaries like Nani Palkiwala,” Singh said after the meeting of the advisory council of the Finance Commission.
