Sir while calculating private or personal income which things are to be incuded or excluded from there… there is lit bit confusion regarding that
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Dear Jagpreet
Private income is the income that is generated by private individual or a household from engaging in any occupational activities or any type of income that has not received as salary or the commission.
Private Income = Income from domestic product accruing to private sector + Net factor income from abroad + All types of transfer incomes.
On the other hand, Personal income refers to all income collectively received by all individuals or households in a country. Personal income includes compensation from a number of sources, including salaries, wages, and bonuses received from employment or self-employment, dividends and distributions received from investments, rental receipts from real estate investments, and profit sharing from businesses.
PI = Undistributed profits UP (received by earnings) – Corporate tax CT (received by government) – Net interest households payment NIH (payment made from households) + Transfer payment from households TPH (received by households)
Hope it helps.