National income

National Income: National Income or NI represents the total income received by land, labor and capital. It is constructed by subtracting depreciation and indirect taxes from GDP. National Income equals total compensation of labor, rental income, net interest, income, income of properties and corporate profits. So it is the aggregation of factor income with arises from the current production of goods and services by the nation’s economy.

Thus,

National income = Net national product – indirect taxes + subsidies.