Question

Differentiate between personal income and private income.

Make a comparison between private income and personal income.

State the difference between the following:

Private Income and Personal Income

Answer 1

Sr. No.	Personal income	Private income
1.	It is the income that individuals actually receive from all the sources.	It is the income accruing to the private sector from all sources.
2.	Corporate savings and corporate taxes remain excluded from personal income.	Both corporate savings and corporate taxes are parts of private income.
3.	Personal Income = Private Income − (undistributed profits of the enterprises + corporate taxes + Contribution of the enterprises towards social security schemes)	Private income is income accruing from domestic product + net factor income earned abroad + interest on national debt + net current transfer payments from the government + the rest of the world.