In force · As amended up to 2026-08
3. In any case where there are two or more successor States, there shall be computed, in respect of the period commencing on the appointed day and ending on the 31st day of March, 1957 and in respect of each subsequent financial year, the total payments made in all the successor States in respect of the pensions referred to in paragraphs 1 and 2. That total representing the liability of the existing State in respect of pensions shall be apportioned between the successor States in the population ratio and any successor State paying more than its due share shall be reimbursed the excess amount by the successor State or States paying less.
3. (1) For the purposes of clause (2) of article 270, the proceeds attributable to Part C States for the first half and[1] [to Union territories] for the second half, of the financial year commencing on the Ist day of 3 April, 1956, shall be taken to be 2 4 per cent. and 1 per cent. respectively, of so much of the net proceeds of taxes on income for the half year as does not represent the net proceeds of taxes payable in respect of Union emoluments.
(2) The percentage of the net proceeds of 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 (other than the State of Jammu and Kashmir*) under clause (2) of article 270 in the first half of the said financial year shall be 55 per cent.; and the total amount to be so assigned shall be distributed among the said States as follows:—
|State|Percentage|
|---|---|
|Andhra Pradesh . . . . . . .|5.49|
|Assam . . . . . . .|2.25|
|Bihar . . . . . . .|9.75|
|Bombay . . . . . . .|17.50|
|Hyderabad . . . . . . . .|4.50|
|Madhya Bharat . . . . . . .|1.75|
|Madhya Pradesh . . . . . . .|5.25|
|Madras . . . . . . .|9.56|
|Mysore . . . . . . .|2.45|
|Orissa . . . . . . .|3.50|
|Patiala and East Punjab States Union . . .|0.75|
|Punjab . . . . . . .|3.25|
1. Ins. by the Adaptation of Laws (No. 1) Order, 1956.
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh.
|State|Percentage|
|---|---|
|Rajasthan . . . . . . .|3.50|
|Saurashtra . . . . . . .|1.00|
|Travancore-Cochin . . . . . .<br>|2.50|
|Uttar Pradesh . . . . . . .<br>|15.75|
|West Bengal . . . . . . .<br>|11.25|
(3) The percentage of the net proceeds of the taxes on income, except in so far as those proceeds represent proceeds attributable to[1] [Union territories] or the taxes payable in respect of Union emoluments, which is to be assigned to[2] [States (other than the State of Jammu and Kashmir*)] under clause (2) of article 270 in the second half of the said financial year shall be 55 per cent.; and the total amount to be so assigned shall be distributed among the said States as follows:—
|State|Percentage|Additionalpercentage|
|---|---|---|
|Andhra Pradesh . . . .|8.09|..|
|Assam . . . . . . .|2.25|..|
|Bihar . . . . . . .|9.75|..|
|Bombay . . . . . .|18.10|1.00|
|Kerala . . . . . .|1.38|2.26|
|Madhya Pradesh . . . . .|5.14|..|
|Madras . . . . . . .|7.79|0.24|
|Mysore . . . . . . .|3.74|2.25|
|Orissa . . . . . . .|3.50|..|
|Punjab . . . . . . .|4.00|..|
|Rajasthan . . . . . .|3.51|..|
|Uttar Pradesh . . . . .|15.75|..|
|West Bengal. . . . .|11.25|..|
(4) For the purposes of this paragraph—
(a) the first half and the second half of the financial year commencing on the 1st day of April, 1956, shall be deemed to be the first seven months and the remaining five months, respectively, of that financial year;
(b) the net proceeds of taxes on income for the first half and for the second half of the said financial year shall be deemed to be seven-twelfths and five-twelfths, respectively, of the net proceeds of such taxes for that financial year.
Source: India Code