A Large Bench of the Supreme Court of India clarified that for the purpose of deciding net monthly income of the deceased (in a motor vehicle accident), the amount of voluntary contributions made should be included in the salary.
Referring to its past judgment, the Court said “while ascertaining the income of the deceased, any deductions shown in the salary certificate as deductions towards GPF, life insurance premium, repayments of loans etc., should not be excluded from the income. The deduction towards income tax / surcharge alone should be considered to arrive at the net income of the deceased.”
Dhingra & Singh 