Answer :

Personal Income (PI) = NDPFC+ Net factor income from abroad (NFIA) + Transfer Income - Undistributed profit - corporate tax - Net interest paid by households

NDPFC= Rs.8000 crores


NFIA = Rs.200 crores


Transfer Income = Rs.300 crores


Undistributed profit = Rs. 1,000 crores


Corporate tax = Rs.500 crores


Net interest paid by households = Interest paid - Interest received


= 1200 – 1500


= (-) Rs.300 crores


PI = 8000 + 200 + 300 - 1000 - 500 - (- 300)


= 8000 + 200 + 300 - 1000 - 500 + 300


PI = 7300


Personal Disposable income = Personal Income - Personal Payments


= 7300 – 500


= Rs.6800 crores


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