GDP = Wages+ Interest + Rent +Profit + Dividend + Indirect Taxes-Subsidies+ Depreciation

The term Profit can be further sub-divided into: profit tax; dividend to all those shareholders; and retained profit (or retained earnings).

Such an approach is adopted in India to calculate the contribution of services sector to the economy.

Any income corresponding to which there is no flow of goods and services or value added, it should not be included in calculation by Income method.