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Judgment
G.P. Mittal, J.—The Appellant Oriental Insurance Company Limited impugns the award dated 10.08.2010 in case of deceased Smt. Rama Sharma, who was aged about 50 years and five months on the date of accident which took place on 19.01.2009. The deceased had an income of Rs.19,866/-. A limited notice was issued to Respondents No.1 to 4 only on the aspect of deduction of income tax to arrive at the multiplicand.
The deceased had an annual income of Rs.19,866/- x 12 = Rs.2,38,392/-. If there are no savings, the liability of the tax would be as under:
(1).
Annual salary of the deceased
= Rs.2,38,392/-
(2).
Exemption in case of woman
= Rs.1,80,000/-
(3).
Taxable income
= Rs.58,392/-
(4).
Percentage of tax upto an income of Rs.2.5 lacs
= 10%
(5).
The income tax payable (in case there are no savings)
= Rs.5,839/-
The Assessee is entitled to deduction of the savings u/s 80C of the Income Tax Act.
As per Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , it is settled that the annual income of the deceased would be "actual salary less tax."
The salary slip placed on record discloses that the amount of Rs.1220/- was being deducted from the salary towards payment of GPF, State insurance and RPMF. If this amount is deducted from the taxable income, there would be liability of payment of income tax at the rate of Rs.4375/- per annum only and the dependency would work out to be Rs.20,28,156/-. The Tribunal awarded a sum of Rs.20,66,064/- on account of loss of dependency. Since the tax was not being deducted at source by the Rajasthan Govt. deceased Smt. Rama Sharma''s employer, it can be assumed that there might have been other savings u/s 80C of the Income Tax Act and in that case there would not be any change in calculation of dependency. Even if, it is assumed that there was liability of income tax at the rate of Rs.4357/- per annum, there was not much difference in the calculation of dependency.
The compensation awarded by the Tribunal in my view is just and reasonable and does not call for any interference. The Appeal is accordingly dismissed and the award is confirmed. No costs.