The current study is to explore the disparities in sharing tax revenues among the Centre and select Northen and southern states of India. The southern states argue that states like Uttar Pradesh and Bihar, which have big populations, benefit from the lopsided distribution of government money. Finance minister’s from three southern states and one union territory convened in an unprecedented move. They established a pressure organisation to overthrow the National Democratic Alliance (NDA) administration, which is led by the Bhartiya Janata Party, since they disagreed with the revenue-sharing formula established by the 15th Finance Commission between the federal government and the states. After the conference, they told the media that financial commission ToR changes will hurt southern states. They also announced their bloc plan to continue opposition. They contended that efficient union government policy implementation shouldn’t result in consequences. The ToR recommended utilising the 2011 census to distribute funding to states instead of the 1971 census. The population of Andhra Pradesh, Karnataka, Tamil Nadu and Kerala, declined from 22% in 1971 to 18.2% in 2011. The ToR downplayed budgetary restraint. The ToR recommended utilising the 2011 census instead of the 1971 census for state spending. In terms of population, the states of Tamil Nadu, Kerala, Andhra Pradesh, and Karnataka fell from 22% in 1971 to 18.2% in 2011. The ToR also lowered the importance of financial restraint. The present study has assessed the finance commission reports and tried to show the difference in tax sharing among the select Northen and southern states of India.