# FREE IGNOU BECC-133 SOLVED ASSIGNMENT 2023-24

(b) Calculate Net Domestic income
Particulars ₹ in crores
(i) Compensation of employees 2000
(ii) Rent and interest 800
(iii) Indirect taxes 120
(iv) Corporation tax 460
(v) Consumption of fixed capital 100
(vi) Subsidies 20
(vii) Dividend 940
(viii) Undistributed profits 300
(ix) Net factor income from abroad 150
(x) Mixed Income 200

To calculate Net Domestic Income, we need to use the Income Method of calculating National Income. The formula for Net Domestic Income is as follows:

Net Domestic Income = Compensation of Employees + Rent and Interest + Indirect Taxes – Subsidies + Mixed Income + Net Factor Income from Abroad + Dividend + Undistributed Profits – Consumption of Fixed Capital

Given the values: (i) Compensation of Employees = ₹2000 crores (ii) Rent and Interest = ₹800 crores (iii) Indirect Taxes = ₹120 crores (vi) Subsidies = ₹20 crores (x) Mixed Income = ₹200 crores (ix) Net Factor Income from Abroad = ₹150 crores (vii) Dividend = ₹940 crores (viii) Undistributed Profits = ₹300 crores (v) Consumption of Fixed Capital = ₹100 crores

Substitute these values into the formula:

Net Domestic Income = 2000 + 800 + 120 – 20 + 200 + 150 + 940 + 300 – 100

Net Domestic Income = ₹4590 crores

Therefore, the Net Domestic Income is ₹4590 crores.

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