(i) Dividend received by a foreigner from investment in shares of an Indian company will not be included in the estimation of nation income of India. This is because such dividends are a part of the factor incomes paid to the foreign residents. Thus, such dividends would not be included while estimating national income of India.
(ii) Profits earned by a branch of an Indian bank in Canada will be included in the estimation of national income in India. This is because branch of Indian bank in Canada comes under the domestic territory of India.
(iii) Scholarship given to the Indian students studying in India by a foreign company will not be included in the estimation of national income of India. This is because such scholarships are merely the transfer payments.
The problem of double counting is an important problem that is involved in the
Domestic territtory means.where the goods capital and labours of india can be easily go/flow.Therefore indian bank in canada is also a Place where indians can also go easily so.it will.included in domestic.income