From the following, which will be included in the National Income?

Expenditure on adding a floor to the building.

The correct answer is Option (3) → Expenditure on adding a floor to the building.

• Social security contributions by employees – These are transfer payments and not a part of factor income, so they are not included in National Income.

• Expenditure on procuring building materials for maintenance – This is considered intermediate consumption, not final expenditure, so it is not included in National Income.

• Expenditure on adding a floor to the building – This is a form of capital formation (investment in fixed assets), which is part of Gross Domestic Capital Formation, and hence included in National Income.

• Payment of interest on a loan taken by an employee from the employer – This is a personal financial transaction and not a production-related factor income, so it is not included in National Income.

Note: Social security contributions are included in national income only when they are paid by employers on behalf of employees, as they form part of compensation of employees. However, in this question, it specifically mentions contributions by employees themselves, which are treated as transfers of income and not as a payment for any current production. Since national income includes only payments made in return for factor services, employee contributions are not included.