Is gifts given by an employer to his employees on Independence Day included/excluded in domestic income of India?
Is gifts given by an employer to his employees on Independence Day included/excluded in domestic income of India?
Anurag Pathak Changed status to publish December 9, 2023
No,
gifts given by an employer to his employees on Independence Day will not be included in the domestic product as it is a transfer payment.
Explanation:-
The employees do not provide any factor services against gifts given by the employer.
It does not add to any current flow of goods and services in the economy.
Anurag Pathak Changed status to publish December 9, 2023
