Q.What do you mean by the term "Personal Income" ?

Personal Income is the income actually received by individuals/households in a year before direct taxes; PI = National Income − (undistributed profits + corporate taxes + social-security contributions) + transfer payments.

Personal Income (PI) is the sum of all incomes actually received by all individuals or households of a country during a given year. It differs from national income because not all earned income is received (some is retained by companies and paid as taxes), and some received income is not currently earned (transfer payments).

Formula:

Personal Income = National Income − Undistributed corporate profits − Corporate income taxes − Social-security contributions + Transfer payments

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