The submission of the respondents that the deduction of 30% from the salary is not warranted in view of the decision in Sarla Verma, is not sound. In Sarla Verma, the monthly salary of the deceased was only Rs. 4004/- and the annual income even after taking note of future prospects was Rs. 72072/-. The income was in a range which was exempt from tax, if the permissible deductions were applied.
Supreme Court: Where the annual income is in the taxable range, appropriate deduction should be made towards income tax while computing compensation i
- Thread starter Educator
- Start date