Will the following be included in domestic income of India? Give reasons for your answer.
(i) Profits earned by a foreign bank from its branches in India.
(ii) Scholarships given by Government of India.
(iii) Profits earned by a resident of India from his company in Singapore.
(iv) Salaries received by Indians working in American Embassy in India.
(i) It will be included in domestic factor income of India, because foreign bank is generating profit within the domestic territory of India. .
(ii) These will not be included in domestic factor income of India, because scholarships are transfer payments.
(iii) These will not be included in domestic factor income of India, because company of the resident of India is not located within the domestic territory of India.
(iv) These will not be included in domestic factor income of India, because American Embassy in India is not a part of domestic territory of India.