FREE IGNOU BECC-133 SOLVED ASSIGNMENT 2023-24
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.
