Which of the following is a component of Private Income?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → National debt interest
Private income adds five items: factor income from NDP accruing to the private sector, national debt interest, NFIA, current transfers from government and other net transfers from abroad.
Depreciation is nobody’s income. Net indirect taxes go to the government, not to the private sector. Personal tax payments are paid out of income.
NCERT (2026-27): “National Disposable Income and Private Income … Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world.” |