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      Question

      Given the following economic indicators for a household

      sector in 2026 (in ₹ Crores): ·        Private Income: 8,500 ·        Corporate Profit Tax: 800 ·        Undistributed Profits (Retained Earnings): 500 ·        Direct Taxes paid by households: 1,200 ·        Miscellaneous Receipts of Govt. Depts: 200 Calculate the Personal Disposable Income (PDI).
      A ₹5,800 Crores Correct Answer Incorrect Answer
      B ₹7,200 Crores Correct Answer Incorrect Answer
      C ₹6,500 Crores Correct Answer Incorrect Answer
      D ₹6,000 Crores Correct Answer Incorrect Answer
      E ₹5,500 Crores Correct Answer Incorrect Answer

      Solution

      Personal Disposable Income (PDI) is the portion of personal income that households can actually spend or save after fulfilling all compulsory payment obligations to the government.    Personal Disposable Income = personal income – direct taxes – Miscellaneous receipts of govt.   Personal Income (PI) represents the total income actually received by households. It is derived by subtracting corporate earnings that do not reach households from the total Private Income   Personal income = private income – corporates profit tax – undistributed profits = 8500 – 800 – 500 = 7200   As such, personal disposable income = 7200 – 1200 – 200 = Rs.5800 crore

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