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Which of the following will be included in the National Income of India ?

(A) Donations given to a religious institution.

(B) Payment of Income Tax

(C) Scholarship given to students

(D) Profits earned by an Indian company from its branch in France

(E) Purchase of a television set by a consumer household

Choose the correct answer from the options given below :

Solution

Correct Option: 3

Donations (A), Income Tax (B) and Scholarships (C) are transfer payments and are excluded from National Income. Profits earned by an Indian company from its branch in France (D) are part of Net Factor Income from Abroad, included in National Income. Purchase of a TV (E) is private final consumption expenditure, also included. So D and E.

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