How will you treat the following while estimating National Income? Give reasons for your answer.
(i) Salaries received by non-residents Indian working in Russian Embassy in India.
(ii) Profits earned by an Indian bank from its branches abroad. .
(iii) Entertainment tax received by the government.
(i) It is not included in the estimation of National Income because salaries received by the non-residents Indian working in Russian Embassy in India is a part of domestic income of Russia.
(ii) It is included in the estimation of National Income because it is a part of Factor Income from Abroad. (Hi) Entertainment tax is an indirect tax which is collected. It is not to be included in the estimation of National Income as it is already accounted for by the firms and remitted to Government.