Question
Are the following included in national income? Give reasons.
(i) Bonus, (ii) Income tax, (iii) Change in stocks, (iv) Corporation tax,
(v) Sale of shares, (vi) Salaries of Indians working in the office of W.H.O. located in New Delhi.
Solution
(i) SYes, because it is a deferred wage payment.
(ii) Yes, because it is a part of income of a person.
(iii) Yes, because it is a part of current production.
(iv) Yes, because it is part of profit of a joint stock company.
(v) No, because it is a mere financial transaction involving transfer of funds only.
(vi) Yes, because staff of an international body like World Health Organisation are treated as normal resident of the country in which that body operates.
