Will the following be a part of domestic factor income of India? Give reasons.
(i) Old age pension given by government.
(ii) Factor income from abroad.
(iii) Salaries to Indian residents working in Russian Embassy in India.
(iv) Profits earned by a company in India which is owned by a non-resident.
(i) No, because pension is paid on account of old age of a person and not for his rendering of productive services.
(ii) No, because factor income is earned not within domestic territory of India but from abroad.
(iii) No, because Russian Embassy in India is not a part of domestic territory of India (but a part of domestic territory of Russia).
(iv) Yes, because profits are earned by the company within India's domestic territory irrespective of ownership of the company.
