The net divisible pool, or net proceeds, is that part of the gross tax revenue from which a share would have to be vertically devolved by the Union to all States, it excludes:
1. Cesses
2. Surcharge
3. Cost of collection of taxes

How many of the above is/are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

Question

The net divisible pool, or net proceeds, is that part of the gross tax revenue from which a share would have to be vertically devolved by the Union to all States, it excludes:
1. Cesses
2. Surcharge
3. Cost of collection of taxes

How many of the above is/are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

ONLiNE UPSC · Accepted Answer

The net divisible pool refers to the portion of the Union's gross tax revenues that is shared with the States as part of vertical devolution. Certain components of gross tax revenues are excluded from this pool:-
● Cesses are levied for specific purposes and are not shared with states.
● Surcharges are also not shared with states and remain part of the Union's revenue.
● The cost of tax collection is deducted before calculating the net proceeds.

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Net Divisible Pool

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M Question 1	⏱ 0
The net divisible pool, or net proceeds, is that part of the gross tax revenue from which a share would have to be vertically devolved by the Union to all States, it excludes: 1. Cesses 2. Surcharge 3. Cost of collection of taxes How many of the above is/are correct? (a) Only one (b) Only two (c) All three (d) None