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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 |
Solution
Find: Domestic Income (NDPFC) =?
NDPFC = Compensation of Employees + Operating Surplus + Mixed Income
= 1,700 + 2,400 + 1,400 = 4,500 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
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