India, Feb. 18 -- The Union government has accepted the tax-sharing recommendations of the 16th Finance Commission, effective from April 1, 2026 to March 31, 2031. Finance Commission is a constitutional body established every five years by the President of India to recommend the distribution mechanism of net proceeds of taxes between the Union government and states. This divisible pool of tax does not include cess and surcharge levied by the Union government. The Finance Commission recommends the principles that govern grants-in-aid-payments in the nature of assistance, donations or contributions-to states from the Consolidated Fund of India and to panchayats and municipalities. The Finance Commission reviews and recommends the financing ...