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Mr. Singh earns Rs. 70,000/- from his shop, owns a house in good locality has domestic help for household chores and is satisfied in saving Rs. 20,000/- every month. Identify and define the different types of income of Mr. Singh by observing the above mentioned statement.

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(i) Earns Rs. 70,000 is money income

Money income – All the income received in the form of money or cash in terms of currency is termed as money income. 

(ii) Lives in own house is real direct income Real Direct income – It consists of those material goods and services available to the family members without spending money. 

(iii) Domestic help is real indirect income Real indirect income – It consists of those material goods and services which are available to the family only after some means of exchange (mainly money) is involved. 

(iv) Satisfied in saving Rs 20,000 Psychic Income – It refers to the satisfaction derived from the use of money and the real income.

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