Income method measures National Income from the side of payments made to the primary factor of production for their productive services in an accounting year.

The components of factor income are (i) Employee’s Compensation, (ii) Profit, (iii) Rent, (iv) Interest, (v) Mixed income and (vi) Royalty.

Profit, rent, interest and other mixed income are jointly known as operating surplus.

The difference between Gross National Product and Depreciation is called Net National Product (NNP). NNP at factor cost is the net output evaluated at factor prices. It includes income earned by factor of production through participation in the production process, such as wages and salaries, rents, profits etc.

It is also called National Income. NNPFC = NNPmp – Indirect taxes

+ Subsidies = National Income. But now NNP_MP is National Income

1. The world's first 3D rocket is set to launch from Sriharikota soon.

2. This is the rocket Agnibaan of Chennai's private space company Agnikul Cosmos.

1. The 18th G20 summit has concluded in New Delhi.

2. The G20 was established in 1999 after the Asian financial crisis as a forum for finance ministers and central bank governors to discuss global economic and financial issues.

3. In the wake of the 2007 global economic and financial crisis, the G20 was elevated to the level of heads of state/government, and in 2009 was designated as the "major forum for international economic cooperation".

In India, on the one hand, Per Capita Income is low and on the other hand, there is large inequality in the distribution of wealth and income, according to Human Development Reports. Lack of opportunity means that its most valuable assets its people is not being fully used. It is appropriate reason of income gap.

The average income of the people of a country in a particular year is called Per Capita Income for that year. So, it is National Income divided by population.

Per Capita Income

= National Income/Total population of the country

Though Per Capita Income is more reliable than GNP for many particular purpose.

Initially NNP_FC was known as National Income but Now NNP_MP is known as National Income.

Gross profit = Net sales (total receipts) - Cost of goods  sold (total expenditure)

In other words it is the total receipt over total cost.