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?
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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.
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