1.

From the following data, calculate Personal Income and Personal Disposable Income.Rs (Crore)(a)Net Domestic Product at factor cost8,000(b)Net Factor Income from abroad200(C)Undisbursed Profit1,000(d)Corporate Tax1,000(e)Interest Received by Households1,500(f)Interest Paid by Households1,200(g)Transfer Income300(h)Personal Tax500

Answer»

Personal Income = NDPFC + Net factor income from abroad (NFIA) + Transfer Income - Undistributed profit - corporate tax - Net interest paid by households

NDPFC = Rs.8000crores

NFIA = Rs.200crores
Transfer Income = Rs.300crores
Undistributed profit = Rs. 1,000crores
Corporate tax = Rs.500crores
Net interest paid by households = Interest paid - Interest received
= 1200 – 1500
= (-) Rs.300crores
So, putting the values in the above formula

PI = 8000 + 200 + 300 - 1000 - 500 - (- 300)
= 8000 + 200 + 300 - 1000 - 500 + 300
PI = 7300
So, Personal Income = Rs.7300crores
Personal Disposable income = Personal Income - Personal Payments
= 7300 – 500
= Rs.6800crores


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