Motor Accident Compensation -- Annual Income of Deceased -- Method of computation differs for salaried and self-employed persons
(i) Motor Vehicles Act, 1988, S.166 -- Motor Accident Compensation -- Annual Income of Salaried Deceased -- The Income Tax Return of the year immediately preceding death is sufficient to establish annual income, since the financial effect of a promotion is often reflected only in that year. Where such return is not available, the promotion letter along with other financial proof may be relied upon. (ii) Motor Vehicles Act, 1988, S.166 -- Motor Accident Compensation -- Annual Income of Self-Employed Deceased -- Annual income is to be assessed on the average of Income Tax Returns for up to three preceding years. Where fewer returns exist, surrounding business factors become relevant, including nature and location of business, its growth pattern, effect of death on the business, future growth potential, initial losses in capital-intensive ventures, and any other relevant business circumstance. (iii) Motor Vehicles Act, 1988, S.166 -- Motor Accident Compensation -- Income Tax Returns Filed After Death -- Such returns require caution and must ordinarily be supported by financial statements, since income figures may be inflated after death to enhance compensation.
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