The incorrect statement regarding Local Government in India is Option 1: According to the Indian Constitution, local government is not an independent tier in the federal system.

This statement is incorrect because according to the Indian Constitution, local government is indeed recognized as an independent tier in the federal system. The Constitution of India provides for a three-tier system of government, which includes the central government, state governments, and local governments.

Local government in India is established under the provisions of the Constitution`s 73rd and 74th Amendments Acts of 1992. These amendments introduced a constitutional framework for local self-government, empowering local bodies known as Panchayats at the village level and Municipalities at the urban level.

The 73rd Amendment Act applies to rural areas and provides for the establishment of Panchayats, while the 74th Amendment Act applies to urban areas and provides for the establishment of Municipalities. These amendments grant constitutional status to local governments and ensure their functioning as independent tiers of government.

Option 2: 30% of the seats in local bodies are reserved for women is a correct statement. The Constitution of India mandates the reservation of seats for women in local bodies to promote gender equality and ensure women`s participation in decision-making processes at the grassroots level.

Option 3: Local government finances are to be provided by a Commission is also a correct statement. The Constitution establishes State Finance Commissions (SFCs) to make recommendations regarding the financial resources of local governments. SFCs play a crucial role in determining the share of funds to be allocated to local bodies from the state government`s revenue.

Option 4: Elections to local bodies are to be determined by a Commission is also a correct statement. The Constitution provides for the establishment of State Election Commissions (SECs) to conduct elections to local bodies. SECs are responsible for the preparation and conduct of elections, including the delimitation of constituencies, electoral rolls, and supervising the electoral process.

In conclusion, the incorrect statement is Option 1, as local government in India is recognized as an independent tier in the federal system according to the Indian Constitution.