5.

Concept of Private Income,

Personal Income and Personal
Disposable Income.
NDPfc can be divided in to two parts :- Part of NDPfc accruing to Private sector
and Part of NDPfc accruing to Government Sector.
2. NDPfc = Part of NDPfc accruing to Private sector + Part of NDPfc accruing to
Government Sector.
3. Part of NDPfc accruing to Government Sector = Savings of Non Departmental
enterprises + Income of Government from Property and Entrepreneurship
4. Part of NDPfc accruing to Private sector = NDPfc - Part of NDPfc accruing to
Government Sector.
5. Part of NDPfc accruing to Private sector = NDPfc (Savings of Non
Departmental enterprises + Income of government from Property and
Entrepreneurship)
6. Private Income= Part of NDPfc accruing to private sector + Net factor Income
from Abroad + Current Transfer from Government + Net Current Transfer from
Rest of World + Interest on Public Debt
7. Private Income= (NDPfc - Part of NDPfc accruing to Government) + Net factor
Income from Abroad + Current Transfer from Government + Net Current Transfer
from Rest of World + Interest on Public Debt
8. Private Income= NDPfc (Savings of Non Departmental enterprises + Income
of government from Property and Entrepreneurship) + Net factor Income from
Abroad + Current Transfer from Government + Net Current Transfer from Rest of
World + Interest on Public Debt
9. Personal Income = Private Income Corporation Tax Undistributed Profits
10. Undistributed Profits may be given as Net retained earnings of private sector
enterprises or savings of private sector enterprises or corporate savings
11.Personal disposable Income = Personal Income- Direct tax paid by households
Miscellaneous receipts of Government administrative undertakings
12. Direct tax paid by household may be given as personal direct tax.
1. Calculate personal disposable income from the given data: ITEMS
(Rs. in
crores )
i. Net current transfered from rest of
3
the world.
ii. Private income
200
iii. Personal taxes

30

National debt interest

Corporate profit tax

20

Undistributed profit of corporation

10

Ans. Rs. 140 Crores

2. Calculate personal disposable income from the given data: ITEMS
i. Net current transferred from rest of the
world.
ii. Net domestic product accruing to private
sector.
iii. Net factor income from abroad.
iv. National debt interest
v. Corporate profit tax
vi. Undistributed profit of corporation
vii. Net current transferred from rest of the
world.
Ans. Rs. 485 Crores

(Rs. in
crores )
15
500
(-)10
40
55
20
15

3. Calculate personal income from the given data: ITEMS

i. Net current transferred from rest of the
world.
ii. Net domestic product accruing to private
sector.
iii. Net factor income from abroad.
iv. National debt interest
v. Corporate profit tax
vi. Undistributed profit of corporation
vii. Net current transferred from rest of the
world.

(Rs. in
crores )
25
600
(-)10
50
65
20
15

4. Calculate ' Personal income from the following data: ITEMS

(Rs. IN
LAKHS)
i. Retained earning of private
20
corporation.
ii. Miscellaneous receipts of
50
government.
iii. Personal disposable income.
200
iv. Personal taxes
30
v. corporate profit tax
10
Ans. Rs. 280 Crores.
5. Calculate Gross National Disposable income and Personal income; ITEMS
(Rs. IN
Crores)
i. Net factor income from abroad.
(-)50
ii. Net indirect taxes
110

iii. Current Transferred by the

government
iv. Corporate taxes
v. Net domestic product at market price
vi. National debt interest
vii. NCT from abroad.
viii. Consumption of fixed capital
ix. Domestic product accruing to govt.
x. Retain earning of private corporation.
Ans. GNDI Rs. 900 Croresd. PI = 720 RS.
6. From the following data, Calculate
a. National Income
b. Personal disposable income
ITEMS
i. Compensation of employee
ii. Rent.
iii. Profit
iv. CFC
v. M I
Vi. Private income
vii. NFIA
viii. Net retained earnings of private
enterprises.
ix. Interest
x. N I T
xi. Net Export.
xii. Direct txes
Xiii. Corporation tax.

40
60
800
80
10
50
70
10

(Rs. IN
Crores)
1200
400
800
300
1000
3600
-50
200
250
350
-60
150
100
Ans. NI Rs. 3600

Crores PI = 3150 RS.

7. Calculate Gross National Disposable income and Personal income; ITEMS
(Rs. IN Crores)
i. Net factor income from abroad.
(-) 10
ii. Net indirect taxes
120
iii. Current Transferred by the
30
government
iv. Corporate taxes
20
v. National income
900
vi. National debt interest
50
vii. NCT to abroad.
20
viii. Personal tax
40
ix. Domestic product accruing to govt.
90
x. Retain earning of private corporation.
10
Ans. NNDI Rs. 1050 Crores. PDI =680 RS.