computation of loss of income under M.V.Act
KANDE VENKATESH GUPTA
(Querist) 24 December 2008
This query is : Resolved
Dear Members,
I am appearing for claimant-wife of the deceased, claiming compensation for the death of her husband caused in a motor vehicle accident. The Gross income of the deceased is Rs.25,000/-. The deductions are as follows:
Group Insurance: Rs.100/-
Professional Tax: Rs. 150/-
Contribution to PF: Rs.5,000/-
Housing Loan: Rs.5,000/-
Festival Advance: Rs.1,000/-
Thus, the take home salary is Rs.13,750/-
Now the question is, since the contribution towards Provident Fund and Housing Loan Instalment is voluntarily, which depends of the will and wish of the employee, whether the said amounts can be deducted from the gross income for the purpose of computation of loss of income. I am contending before the Court that the same cannot be deducted since they are voluntary contribution and it is the employee, who can decide the quantum of contribution towards PF as it is in the nature of savings. However, the counsel for the insurance company is contending that only take home salary should be taken while computing the loss of income. Is there any Judgment of Hon'ble Supreme Court or other High Courts in this regard. Please help me,
my mail ID:
venkateshgupta_kande@yahoo.co.in
Cell: 09885808021
H.No; 1-1-16/1/2/A, Jawaharnagar
R.T.C. Cross Roads, Hyderabad- 500 020
Andhra Pradesh.
Thanks in advance,
J K Agrawal
(Expert) 25 December 2008
NIA v Indira Shriwastawa AIR 2008 SC 845 Salary include gross salary and not the pay pocket salary
KANDE VENKATESH GUPTA
(Querist) 26 December 2008
Daar Agarwal,
I am very much delighted for your prompt response. I got the Judgment. Thanx Once again for your support.
