NEW DELHI: Pointing out that a salaried person has a fixed income while the earnings of a self-employed individual keep fluctuating, Supreme Court Wednesday said different methods should be adopted to calculate grant of compensation in road accident cases.A bench of Justices Sanjay Karol and N K Singh ruled that the income of a salaried person should be decided by the income tax return filed by him/her in the previous year, and in the case of a self-employed person, it should be the average of ITRs of the previous three years.The bench passed the guidelines on the suggestion of senior advocate J R Midha and lawyer Salil Paul who assisted the court as amicus. The order will help bring in uniformity as high courts have been adopting different approaches to assess income.SC said, “The reason for considering only the preceding year (for salaried individuals) is that the financial impact of promotions is significant and may be reflected in ITR for only that year.”The bench added, “A situation may also arise whereby the deceased/claimant mi-ght not have completed a year in the promoted position before the accident or might not have filed ITR for such period. In such cases, the court concerned shall make a reference to the promotion letter and other corroboratory financial statements.”When it comes to “self-employed/individuals carrying out their own business”, there may also be a situation where only one or two ITRs have been filed. Given such scenarios and the fluctuation of income in these professions, surrounding circumstances are also to be taken into consideration, SC said.SC passed the order while awarding compensation of around Rs 2 crore to the family of a construction businessman who died in a road accident when he was 39.Get the latest India news and live updates. Download the TOI App.End of ArticleFollow Us On Social MediaVideos’Highly Deplorable’: India Slams Pakistan Over Demolition Of 125-Year-Old Gurdwara In FarooqabadHealth Concerns Mount As Sonam Wangchuk’s Blood Sugar Falls, Weight Drops As Fast ContinuesDMK Seeks FIR Against CM Vijay, Alleges Plot To Induce MLAs And Alter Assembly NumbersCongress Claims BJP in West Bengal “Will Be Equally Aggressive”; MP Sparks Debate On GovernanceIran Invites BJP Chief Nitin Nabin, Congress Prez Kharge, Pawan Khera To Khamenei’s Funeral: ReportModi Cabinet Reshuffle Buzz: Will NDA Allies And Rebel MPs Find A Place In The Union Cabinet?Three Arrested, Senthil Balaji Under Scanner In Alleged TVK Government Toppling BidCongress Moves Privilege Motion Against Rajnath Singh Over Op Sindoor Claims; Seeks Transparency’Neglecting For 2.5 Years’ Kailash Vijayvargiya’s Letter To CM Mohan Yadav Triggers Political StormWATCH: Eggs, Vegetables Hurled At Mahua Moitra; TMC MP Accuses ‘BJP Goons’, Says Police Stood By123PhotostoriesThink you will get your full deposit back? These surprisingly common move-out mistakes could lead to major deductions from your security depositPsychology says children need their parents the most during these 5 vulnerable moments of the day and how parents should respond during these momentsVande Bharat on a budget: 5 routes you can travel for under INR 1,5005 secrets to build an aura everyone feels attracted toPersonality test: Solo trip or holiday with your partner? What your travel style tells you about yourself5 shocking facts about octopuses that seem too strange to be realBengaluru daycare horror: 8 red flags every parent should know before choosing a daycare10 beautiful baby girl names inspired by the beauty of nature and their heartwarming meaningsFoaming face wash vs gel cleanser: Which one is better for your skin type?6 desi Indian foods that are better eaten at night than in the morning123Hot PicksLPG gas pricePatrick MahomesNEET PG RegistrationEmployees Provident Funds SchemeGTA 6India vs England t20Marcus SmartNayara petrol priceHow to Watch FIFA World Cup TodayTop TrendingNayara energy petrol priceLPG priceKetan Agarwal Murder CaseFIFA World Cup 2026Monaco BlastBengaluru TechieAnukalp MishraSergei IvanovIndigo Check-in Bag FaresAyodhya Ram Temple Donation Theft
NEW DELHI: Pointing out that a salaried person has a fixed income while the earnings of a self-employed individual keep fluctuating, Supreme Court Wednesday said different methods should be adopted to calculate grant of compensation in road accident cases.A bench of Justices Sanjay Karol and N K Singh ruled that the income of a salaried person should be decided by the income tax return filed by him/her in the previous year, and in the case of a self-employed person, it should be the average of ITRs of the previous three years.The bench passed the guidelines on the suggestion of senior advocate J R Midha and lawyer Salil Paul who assisted the court as amicus. The order will help bring in uniformity as high courts have been adopting different approaches to assess income.SC said, “The reason for considering only the preceding year (for salaried individuals) is that the financial impact of promotions is significant and may be reflected in ITR for only that year.”The bench added, “A situation may also arise whereby the deceased/claimant mi-ght not have completed a year in the promoted position before the accident or might not have filed ITR for such period. In such cases, the court concerned shall make a reference to the promotion letter and other corroboratory financial statements.”When it comes to “self-employed/individuals carrying out their own business”, there may also be a situation where only one or two ITRs have been filed. Given such scenarios and the fluctuation of income in these professions, surrounding circumstances are also to be taken into consideration, SC said.SC passed the order while awarding compensation of around Rs 2 crore to the family of a construction businessman who died in a road accident when he was 39.
