From the following data, calculate Personal Income and Personal Disposable Income.



Rs (crore)



(a) Net Domestic Product at factor cost



8,000



(b) Net Factor Income from abroad



200



(c) Undisbursed Profit



1,000



(d) Corporate Tax



500



(e) Interest Received by Households



1,500



(f) Interest Paid by Households



1,200



(g) Transfer Income



300



(h) Personal Tax



500


Personal Income (PI) = NDPFC+ Net factor income from abroad (NFIA) + Transfer Income - Undistributed profit - corporate tax - Net interest paid by households

NDPFC= Rs.8000 crores


NFIA = Rs.200 crores


Transfer Income = Rs.300 crores


Undistributed profit = Rs. 1,000 crores


Corporate tax = Rs.500 crores


Net interest paid by households = Interest paid - Interest received


= 1200 – 1500


= (-) Rs.300 crores


PI = 8000 + 200 + 300 - 1000 - 500 - (- 300)


= 8000 + 200 + 300 - 1000 - 500 + 300


PI = 7300


Personal Disposable income = Personal Income - Personal Payments


= 7300 – 500


= Rs.6800 crores


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