Will the following be a part of domestic income of India? Give reasons for your answer.
(i) Old age pension given by the government.
(ii) Factor income from abroad.
(iii) Salaries to Indian residents working in Russian Embassy in India.
(iv) Profits earned by a company in India, which is owned by a non-resident.
(i) It is not a part of domestic factor income of India, because it is a transfer payment.
(ii) It is not a part of domestic factor income of India, because it is not generated within the domestic territory of India.
(iii) It is not a part of domestic factor income of India, because Russian Embassy in India is not a part of … domestic territory of India.
(iv) It is a part of domestic factor income in India, because the company is within the domestic territory of India.