how to calculate national income on the basis of income method?
according to income method:
NDPFC = compensation of employees + operating surplus + mixed income of the employees
where
compensation of employee include
- wages and salary in cash
- wages and salary in kind
- employees contribution to social security scheme
operating surplus include
- rent
- royalty
- interest
- profit
profit includes three more components
divident undistributed profit and corporate tax
NNPFC =NDPFC + net factor income from abroad
national income = NNPFC
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