Which of the following is a "Transfer income"?
- Dearness allowance paid to Ram, who works for Haryana police.
- Financial help in Orissa to victims of Fani.
- Old age pension received by Ram's father.
- Salary received by an employee of PNB.
Answer & explanation
Correct answer: option 2
Transfer income is the income which is received without any goods and services provided in return. Following are the transfer incomes:
- Old age pension received by Ram's father.
- Financial help in Orissa to victims of Fani.
All the other statements are factor payments which are received against the factor services provided by the individual.