News Income Approach Of National Income Accounting
This approach is based on the estimation of income of diverse factors of production. Income method considers payments made to all productive resources of the reason inwards the kind out of rent, wage, involvement too profit. Thus,
GDI = Rent Wage Interest Corporate Profits along amongst Indirect Taxes too Depreciation
GNI = GDI NFIA
NNI = GNI-Depreciation
It doesn't includes the followings:
• The income earn from the sale of car, house, property, etc. produced inwards past.
• The income earned from the sale of stocks, bonds.
• Transfer payments from government.
The income method consists the following:
Wages too Salaries
It includes the reward too salaries received past times the employees during the twelvemonth addition for sure supplements similar provident fund too other project income.
Rent
Rent includes the rent of land, factories, too houses from where the production procedure is carried out to render goods too services to the consumer.
Interest
It includes the internet involvement income received past times the people of the reason from the investment every mo a factors of production.
Corporate Profits
It consists of corporate profits amongst inventory valuation too majuscule consumption, adjustments. It is the profits earlier tax, which consists of dividend, profit, revenue enhancement too undistributed profits.
Depreciation
The depreciation made past times each work solid for the repair too maintenance of majuscule goods is too included inwards national income.
Net Indirect Taxes
The income generated from indirect taxes is too included inwards national income accounting approach.