Question 23 of 31
Q.Differentiate between Personal and Disposable Income.
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2024Subjective· 3mImportance★★★★★
74% · 23/31 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →Personal Income is the income received by households before personal taxes; Disposable Income is what remains after personal taxes and is available for consumption and saving.
In the Tamil Nadu HSC Class-12 Economics syllabus (National Income aggregates), the two are distinguished as follows:
| Basis | Personal Income (PI) | Disposable Income (DI) |
|---|---|---|
| Meaning | Total income actually received by individuals and households | Income actually available to households after paying personal taxes |
| Taxes | Measured before deducting personal (direct) taxes | Measured after deducting personal (direct) taxes |
| Formula | PI = National Income − undistributed corporate profits − corporate taxes − social-security contributions + transfer payments | DI = Personal Income − Personal (direct) taxes |
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.