how to calculate national income on the basis of income method?

 according to income method:

NDPFC = compensation of employees + operating surplus + mixed income of the employees


compensation of employee include

  •  wages and salary in cash
  • wages and salary in kind
  • employees contribution to social security scheme 

operating surplus include

  • rent 
  • royalty
  • interest
  • profit

profit includes three more components

divident undistributed profit and corporate tax

NNPFC =NDPFC + net factor income from abroad 

national income = NNPFC


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personal income+mis.govt reciepts+personal tax+diret tax+corporate tax+undistributed profits-national debt-current transfers from ROW-current transfers frm govt-income accruing to private sectr+income accruing to public sector+savings of public sector=NNPfc

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