salary paid to an indian resident working in japan embassy located in india.is it included in domestic income of india..why or why not??
Domestic income and national income are two different things. The salary paid to the Indian worker working in a Japanese embassy located in India will not be included in the domestic income of India, as the embassy and military establishments of other countries located in India are not treated as territory of India.
But his salary will be included while calculating national income as an item of net factor income from abroad.
i am sorry to say this because your answers are wrong... salery is paid in foreign territory because japan embasy in india is not included in indian teritory according to our ecnomic territory assumptions... thus salery paid to indian residents is not domestic income because they earn that income outside the indian territory... and nfia is not part of domestic income because the formula goes this way.... national income = domestic income + NFIA..... income from abroad is a part of factor income from abroad which is not a part of domestic income which is clearly shown in the above equation.