Incomes or items that are deducted:
1. Depreciation:
During the process of production the depreciation related to capital factor is deducted from the national product.
2. Indirect tax and subsidy:
- While deriving the market value of a good, the indirect taxes of the government levied on the goods are added.
- Hence, while finding out national product, the indirect taxes are deducted whereas the subsidy given by government is added.
