Expenditure carried out by company up to 1858 and by British government after 1858 in London on behalf of India. Home charges include –
Dividend paid to shareholders by company.
Interest paid by company on the loans raised in London.
Salary and pensions of officials working in London.
Pension of officials worked in India but had retired to London.
Cost of civil and military purchases from London
As a result of home charges fund was not available for India and part of National Income drained out. No capital investment, deindustrialisation, Impoverishment of India was the major outcome of increasing home charges.