Given below are two statements one is labelled as Assertion (A) and other as Reason (R) : Assertion (A) : The President of India determines the qualifications of the Chairman and Members of the Finance Commission. Reason (R) : Chairman and members are appointed by the President of India. Select the correct answer using the codes given below. Codes :
- (a)Both (A) and (R) are true and (R) is correct explanation of (A)
- (b)Both (A) and (R) are true, but (R) is not correct explanation of (A)
- (c)(A) is true, but (R) is false
- (d)(A) is false, but (R) is true
Correct — D, (A) is false but (R) is true. Under Article 280(2), it is Parliament — not the President — that may by law determine the qualifications required for appointment as members of the Finance Commission and the manner of their selection; this was done through the Finance Commission (Miscellaneous Provisions) Act, 1951. So Assertion (A), which credits the President with fixing the qualifications, is false. Reason (R) is true: Article 280(1) provides that the President constitutes the Commission, consisting of a Chairman and four other members 'to be appointed by the President.' Hence A is false and R is true — option (d).
- (a)Both (A) and (R) are true and (R) is correct explanation of (A) — Wrong — this needs both statements true, but Assertion (A) is false: Parliament (via the 1951 Act), not the President, lays down the members' qualifications.
- (b)Both (A) and (R) are true, but (R) is not correct explanation of (A) — Wrong — again assumes (A) is true. The President appoints the members but does not determine their qualifications, so (A) cannot be treated as true.
- (c)(A) is true, but (R) is false — Wrong — this reverses the truth values. In fact (R) is true (the President does appoint the Chairman and members under Article 280(1)); it is (A) that is false.
The Finance Commission is a constitutional body under Article 280. Two separate powers are involved: the President constitutes the Commission and appoints its Chairman and four members [Art. 280(1)], while Parliament, by law, prescribes their qualifications and the manner of their selection [Art. 280(2)] — done through the Finance Commission (Miscellaneous Provisions) Act, 1951. Separating 'who appoints' (President) from 'who fixes qualifications' (Parliament) is the crux of this Assertion-Reason.
The reason statement is a true, well-known fact (President appoints), which tempts you to also accept the assertion. The catch is that appointing and prescribing qualifications are different constitutional functions: the qualifications are set by Parliament's law, not by the President — so the assertion fails even though the reason is correct.
- Article 280(1): the President constitutes the Finance Commission every fifth year (or earlier), with a Chairman and four other members appointed by the President.
- Article 280(2): Parliament may by law determine the members' qualifications and the manner of their selection.
- That law is the Finance Commission (Miscellaneous Provisions) Act, 1951, which specifies the qualifications (e.g., High Court judge, finance/accounts expert, economist, experienced administrator).
- Article 281: the President lays every recommendation of the Finance Commission, with an explanatory memorandum, before each House of Parliament.

- Assuming 'the President appoints' also means 'the President fixes qualifications' — qualifications are set by Parliament's law
- In Assertion-Reason, letting a correct Reason pull you into marking a false Assertion as true
UPSC/UPPSC test the Finance Commission through Assertion-Reason, matching Articles, or asking who appoints/qualifies members and who tables its report.
Who of the following shall cause every recommendation made by the Finance Commission to be laid before each House of Parliament?
- (a) The President of India
- (b) The Speaker of Lok Sabha
- (c) The Prime Minister of India
- (d) The Union Finance Minister
Answer(a) The President of India
Same concept — the President's constitutional role vis-a-vis the Finance Commission (Articles 280-281); here the President tables its report, complementing this question's point that the President appoints, but does not qualify, its members.
- practice — not a real PYQ
Under which article does Parliament determine the qualifications of Finance Commission members?
- (a)Article 280(1)
- (b)Article 280(2)
- (c)Article 281
- (d)Article 275
Answer(b) Article 280(2) — Parliament may by law prescribe members' qualifications and the manner of their selection.
- practice — not a real PYQ
Who lays the recommendations of the Finance Commission before each House of Parliament?
- (a)The Prime Minister
- (b)The Finance Minister
- (c)The President
- (d)The Speaker of Lok Sabha
Answer(c) The President — under Article 281, along with an explanatory memorandum.