Identify which of the following is not included while estimating national income?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Purchase of new shares of domestic company.
While estimating National Income, only the value of goods and services produced during the year is included. This means production-related activities are considered.
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Rent received from commercial banks located in Delhi: Included, as it is a factor income from a production unit within the domestic territory.
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Salary received by an Indian from any foreign embassy: Included, because it is earned by a resident from a foreign entity operating in India, and foreign embassies are treated as part of the foreign territory, so it counts as factor income from abroad.
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Direct purchases by foreigners from Indian markets: Included under exports, as it involves the sale of goods to non-residents.
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Purchase of new shares of domestic company: Not included, because it is a financial transaction, not a production activity. Buying shares does not involve production of goods or services.