Will the following factor incomes be included in domestic income of India? Give reasons for your answer.
(i) Compensation of employees to the residents of Japan working in Indian embassy in Japan.
(ii) Profits earned by a branch of foreign bank in India.
(iii) Rent received by an Indian resident from Russian Embassy in India.
(iv) Profits earned by a branch of State Bank of India in England.
(i) It is a part of domestic factor income in India, because Indian embassy in Japan is a part of domestic territory of India.
(ii) It is a part of domestic factor income of India, because the branch of foreign bank is 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 not a part of domestic factor income of India, because the branch of State Bank of India in England, is not a part of domestic territory of India.