Is dividend received by shareholders included/excluded in national income?
Is dividend received by shareholders included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
Yes,
It will be included as it is a part of the profits of production units, which is distributed to the owners.
Explanation:-
dividend is the part of profits earned against the productive services provided.
It is part of the profits and added to the national income through the income method.
National Income = Compensation of employees + Mixed Income + rent + Royalty + interest + Profit (Corporate Tax + dividend + undistributed profits)
Anurag Pathak Changed status to publish December 9, 2023