Diarchy system introduced in the provinces.It was considered to be a substantial step towards transfer of power of the Indians. The provincial subject of administration were to be divided into two categories: transferred subjects were to be administered by the government with the aid of ministers responsible to the legislative council. The government and the executive council were to administer the reserved subject without any responsibility to the legislature.
Devolution rules: subjects of administration we're divided into two categories Central and provincial. Subject of all Indian importance like railway and finance were bought under the category of central while matters relating to the administration of the provinces were classified as proncial.
The provincial legislature was to consist of one house only legislative council.
The number of Indians in the governor generals executive council was raised to three in a council of eight. The Indian members were entrusted with the departments such as law education labour health and industries.
The center was now to have a bicameral legislature for the first time. It is actually happened after 1935 Act.
Communal representation extended to sikhs Christians anglo Indians etc.
Secretary of State to be henceforth paid salary out of the British revenue.