conditions and standards, and having regard to the requirements of modern administration, the structure of Provincial Finance and, in particular, the levels and sources of Provincial revenues in Indian States and Unions of States;
(6) any other consequential and/or cognate matters which the Committee may consider as arising out of the foregoing terms of reference."
Items (1) and (5) of the terms of reference were concerned with what may be described as "Provincial Fiance" in States and Unions. They were subsequently deleted at the Committee's instance because the field to be covered was far too wide. Moreover, the remaining terms of reference presented a compact subject, that of "federal finance", of the utmost immediate importance in view of the impending constitutional changes; the Committee considered that these alone could conveniently be dealt with within the time at its disposal.
187. The Committee commenced work in November 1948 and submitted the following unanimous Reports:
The Frst Interim Report, concerning Baroda, was submitted on 1st June 1949.
The Second Interim Report, concerning Travancore and Cochin States, was submitted on 10th June 1949.
Part I of the Final Report, setting out the man principles of federal financial integration was submitted on 9th July 1949; the subject of Income-tax (and other taxes on income) was dealt with in a self-contained "Annexure" to this Report.
Part II of the Final Report, setting out the detailed application of the main principles, and containing the financial integration "Scheme Reports" for individual States and Unions (other than Baroda, Travancore, Cochin and Hyderabad), was submitted on 22nd July 1949.
Finally, a Supplementary Report concerning Hyderabad was submitted on 31st July 1949.
The Committee did not deal with Kashmir. As regards the States merged (or likely to be merged) in "British India" under Section 290A of the Government of India Act, 1935, the principles underlying the Committee's recommendations concerning Baroda could be applied. That left only eight units: the States of Mysore and Hyderabad and the
