National Income at Factor Cost (NI(FC)) : It means the sum total of all income earned by resources or factor suppliers for their contribution of land, labour, capital and entrepreneurial ability which go into the year's net production.
NI(FC)=NNP(MP)−Indirect Taxes+Subsidies.
Personal Income (PI) : Personal Income can be defined as the sum of all kinds of incomes actually received by the individuals from all sources during a year. It includes wages and salaries, fees and commission, bonus, fringe benefits, rents, dividends, interest, earnings from self-employment. It also includes transfer incomes like pensions, unemployment allowances, social security benefits, gifts, etc. It includes all earned and unearned income.