CUET Preparation Today
What is required to be subtracted from personal income in order to obtain personal disposable income? |
Net current transfers by the government to the households. Net remittances received by households from rest of the world. Net tax payments by the households. Nothing is to be subtracted as personal income is same as personal disposable income. |
Net tax payments by the households. |
The correct answer is Option (3) → Net tax payments by the households. Personal Disposable Income (PDI) is the amount of income that households actually have available for spending and saving after paying taxes. It is calculated as: Personal Disposable Income=Personal Income (PI) – Personal tax payments – Non-tax payments (such as fines) . |
