Question

While we calculate National Income through Income method, we do not include one of the following components:​

Answer 1

Answer:

Payments out of past savings (like death duties, gift tax, wealth tax, etc.) are not included in the National income because they are paid out of wealth or past savings and do not add to current flow of goods and services. 7. Indirect Taxes (like sales tax, excise duty, custom duty, etc.)