Calculate personal income (in ₹ crore) from the given data.
| Particulars | ₹ (in crore) |
| Private income | 1800 |
| Net retained earnings of private enterprises | 500 |
| Corporation tax | 250 |
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1050.
Personal income is calculated by subtracting the net retained earnings of private enterprises and corporation tax from private income.
Given:
Private Income = ₹1800 crore
Net Retained Earnings = ₹500 crore
Corporation Tax = ₹250 crore
Formula:
Personal Income = Private Income – (Net Retained Earnings + Corporation Tax)
Calculation:
Personal Income = 1800 – (500 + 250)
Personal Income = 1800 – 750 = ₹1050 crore
Hence, the personal income is ₹1050 crore.