How were the net proceeds of taxes in any financial year assigned to the states before the One Hundred and First Amendment Act, 2016?
The net proceeds of taxes in any financial year were not assigned to the states before the One Hundred and First Amendment Act, 2016. Instead, they formed part of the Consolidated Fund of India. The amendment introduced the concept of assigning these proceeds to the states where the tax is leviable in that year, following certain principles formulated by Parliament by law.