While estimating National Income, how will you treat the following? Give reasons for your answer.
(i) Imputed rent of self-occupied houses.
(ii) Interest received on debentures.
(iii) Financial help received by flood victims.
(i) Imputed rent of self-occupied houses is included in the estimation of National Income. This is because all houses have rental value, no matter whether these are rented out or self-occupied.
(ii) Interest received on debentures is not included in the estimation of National Income. This is because income from debentures is a transfer income.,
(iii) Financial help received by flood victims is not included in the estimation of National Income. This is because financial help is a transfer receipt.