(A) Personal Disposable Income is defined as the total sum of money that the individual or the household is left with to spend at its end after paying all the taxes.
Personal Disposable Income= Household Final Consumption Expenditure+ Household Savings
PDI = Rs. (24,500+7,500) (given)
PDI = Rs. 32,000
(B) Personal Income is defined as an individual's total earnings from wages, investment enterprises, and other ventures.
As we know the formula to calculate Personal Disposable Income is,
Personal Disposable Income = Personal Income - Personal Tax Liability
Personal Income = Personal Disposable Income + Personal Tax Liability
Personal Income = Rs. (32,000+Direct Tax Paid By the Household)
Personal Income = Rs. (32,000+6500) (given)
Personal Income = Rs. 38,500
(C) Private Income is defined as the total of all the factors incomes and transfer earnings received by the private sector from all sources.
Private Income = Personal Income + Corporate Tax + Retained Earnings
Private Income = Personal Income + Corporation Tax + Savings of Private Corporate Sector
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(A) Personal Disposable Income is defined as the total sum of money that the individual or the household is left with to spend at its end after paying all the taxes.
Personal Disposable Income= Household Final Consumption Expenditure+ Household Savings
PDI = Rs. (24,500+7,500) (given)
PDI = Rs. 32,000
(B) Personal Income is defined as an individual's total earnings from wages, investment enterprises, and other ventures.
As we know the formula to calculate Personal Disposable Income is,
Personal Disposable Income = Personal Income - Personal Tax Liability
Personal Income = Personal Disposable Income + Personal Tax Liability
Personal Income = Rs. (32,000+Direct Tax Paid By the Household)
Personal Income = Rs. (32,000+6500) (given)
Personal Income = Rs. 38,500
(C) Private Income is defined as the total of all the factors incomes and transfer earnings received by the private sector from all sources.
Private Income = Personal Income + Corporate Tax + Retained Earnings
Private Income = Personal Income + Corporation Tax + Savings of Private Corporate Sector
Private Income = Rs. (38,500 + 1,500 + 3,500)
Private Income = Rs. 43,500
Know more:
Q.1. Define Personal Income?
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Q.2. What is Personal Disposable Income?
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