Question

How will you treat the following while estimating national income of India ? Give reasons for your answer.
(i) Salaries received by Indian residents working in Russian Embassy in India .
(ii) Profits earned by an Indian bank from its branches abroad.
(iii) Goods and Services Tax received by the government.

Answer 1

Correct Answer - Refer Items included/excluded in National Income.
1.Yes, it will be included in the national income as it is a pan of factor income from abroad. 2.Yes, they will be included in the national income as they are a part of the factor income from abroad. 3.NO we will not be included it in national income , because we calculate national income at factor cost .