(i) Division of powers : The Constitution demarcates the powers of the central and the state governments into different lists of subjects.There are three lists : (i) Union List. (ii) State List. (iii) Concurrent List. (ii) Three-tier system : As discussed earlier, under a federal government different tiers of the government govern the same citizens. This is true for India. In India, we have a three-tier system of government, i.e., • Union Government • State Government • Local Self-Government. (iii) Not equal powers to all administrative units : Most of the federations that are formed by ‘holding together’ do not give equal powers to its constituent units. Thus, all states in the Indian Union do not have identical powers. Some states enjoy a special status. Jammu and Kashmir has its own Constitution. Many provisions of the Indian Constitution are not applicable to this state without the permission of the state assembly. (iv) Consent of both the levels of the government : Under a federal government, the fundamental provisions cannot be unilaterally changed by one level of the government, and the same is true for India. The Parliament cannot on its own change the fundamental structure of the Constitution. implementation of constitutional provisions and procedures. The same is true for India. In case of any dispute about the division of powers, the High Courts and the Supreme Court take a decision. (vi) Separate sources of income : A clear mention regarding the financial powers of the centre and the states has been made in the Indian Constitution. Income tax, excise duty, corporation tax, etc., are levied and collected by the central government, whereas land revenue, stamp duty, building tax, etc., come under the state government.