Question

Calculate 

(a) Operating Surplus, and 

(b) Domestic Income :

(i) Compensation of employees	(₹ in Crores) 2,000
(ii) Rent and interest	800
(iii) Indirect taxes	120
(iv) Corporation tax	460
(v) Consumption of fixed capital	100
(vi) Subsidies	20
(vii) Dividend	940
(viii) Undistributed profits	300
(ix) Net factor income to abroad	150
(x) Mixed income	200

Answer 1

(a) Operating Surplus 

= Rent and interest + Corporation tax + Dividend + Undistributed profits 

= 800 + 460 + 940 + 300 = ₹ 2,500 Crores 

(b) Domestic Income 

= Operating surplus + Compensation of employees + Mixed income 

= 2,500 + 2,000 + 200 = ₹ 4,700 Crores.