Question

Calculate the value of Domestic Income from the following data: 

S. NO.	Particulars	Amount (₹ in crore)
(i)	Rent and Royalties	1,300
(ii)	Net Indirect Taxes	200
(iii)	Wages & Salaries (in cash & in kind)	1,700
(iv)	Corporate Tax	400
(v)	Depreciation	400
(vi)	Retained Earnings	300
(vii)	Dividends	400
(viii)	Net Factor Income from Abroad	(−) 120
(ix)	Mixed Income of Self Employed	1,400
(x)	Change in Stock	(−) 200

Answer 1

Find: Domestic Income (NDP_FC) =?

NDP_FC = Compensation of Employees + Operating Surplus + Mixed Income 

= 1,700 + 2,400 + 1,400 = 5,500 core

Compensation of Employees = Wages and salaries (in cash and in kind) 

= 1,700 crore

Operating Surplus = Rent and Royalties + Interest + Profit

= 1,300 + 0 + 1,100 = 2,400 crore

Profit = Corporate Tax +  Retained earnings +  Dividend 

= 400 + 300 + 400 = 1,100 crore

Mixed Income of self-employed = 1,400 crore