Income received by any individual from any sources before direct taxes in one year.
Exclude undistributed corporate profits.
Personal Income=Private Imcome- Undistributed Corporate Profits- Profit Taxes
1. Product Method 2. Income Method 3.Expenditure Method 1. Product Method - Money value of All final Goods & Service in current year. 2. Income Method - measured the flow of factors incomes. Generally four factors- production labour, capital, land and entrepreneurship In case of self employed person, their own labour and expenditure s. called mixed income. Sum of above all factors income is called NDP at factor cost. 3. Expenditure Method - Measured by flow of expenditure.
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