Sheetal, who is working in Mintech Ltd., received her monthly salary today. Her income will be considered under which of the following categories?

Factor income

Factor incomes are the incomes which are received by an individual after rendering certain services in return. Sheetal is rendering her services and in return getting income. Thus, it will be considered under the head of factor income. Whereas, transfer payments are the payments done without expecting anything in return. For example: Donations, scholarships etc.