(i) Compensation of employees to the resident of Japan working in Indian embassy in Japan will be included in domestic factor income of India because Indian embassy in Japan is a part of domestic territory of India and income earned within domestic territory is domestic factor income.
(ii) Payment of fees to a chartered accountant by a firm will not be included in the domestic factor income of India because it is an intermediate expenditure for the firm and only value of final goods and services is included in the domestic factor income.
(iii) Rent received by an Indian resident from Russian embassy in India will not be included in the domestic factor income of India because it is a factor income received from abroad. Russian embassy in India is not a part of domestic territory of India and domestic factor income includes only those incomes which are earned within domestic territory of the country.
(iv) Compensation given by an insurance company to an injured worker will not beincluded in the domestic factor income of India because it is not a factor income and is a transfer income which is not included in the domestic factor income. However, if compensation is given by the employer, it would be included in the domestic factor income.
