Correct Option: C

The Finance Commission of India is established under Article 280 of the Indian Constitution by the President of India to define the financial relations between the centre and the state. The Finance Commission Act of 1951 states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission. As per the Constitution, the commission is appointed every five years and consists of a chairman and four other members.
Note : Finance Commission is established under Article 280 of the Indian Constitution by the President of India. It was formed to define the financial relations between the Centre and the state. Till date, Fourteen Finance Commissions have submitted their reports. 14th Finance Commission headed by Prof. Y V Reddy.