• The Act provided for the establishment of an All India Federation, to be based on the Union of British Indian provinces and Princely states. The representatives of the States to Federal Legislature are to be nominated by the Princes, who were to be used to check the action of nationalists.

• Franchise was limited to 1/6th of the adults.

• Defence and Foreign Affairs were to remain outside the control of the Federal Legislature.

• The Viceroy would retain special control over other subjects.

• The Provinces were to be governed under a new system based on Provincial Autonomy, under which elected ministers controlled all provincial departments.

• Governor could veto legislative and administrative measures the especially those concerning minorities, rights of Civil Servants, law and order, etc.