Under which Article of the Indian Constitution, formation of the Finance Commission is laid down?

Correct option is C

Article 280 of the Indian Constitution provides for the formation of the Finance Commission. The President of India is required to constitute the Finance Commission every five years or earlier, as deemed necessary. The Finance Commission is responsible for making recommendations on the distribution of tax revenues between the Centre and the States and other financial matters related to fiscal federalism in India.
Information Booster:
1. Article 280 mandates the formation of the Finance Commission to make recommendations regarding the distribution of financial resources between the Union and the States.
2. The Finance Commission consists of a Chairman and four other members appointed by the President of India.
3. The Commission's key functions include recommending the distribution of taxes, grant-in-aid to states, and measures to enhance fiscal stability.
4. The recommendations of the Finance Commission are advisory and are implemented at the discretion of the government.
5. The First Finance Commission was constituted in 1951, and the latest is the 15th Finance Commission (2020–2025).