Motor Vehicles Act, 1988, Section 166

Motor Vehicles Act, 1988—Section 166—Accident—Compensation—Whether the income tax is liable to be deducted for determination of compensation under the Motor Vehicles Act?—In case the income of the victim is only from “salary”, the presumption would be that the employer under Section 192 (1) of the Income Tax Act, 1961 has deducted the tax at source from the employee’s salary—In case if an objection is raised by any party, the objector is required to prove by producing evidence such as LPC (Last Pay Certificate) to suggest that the employer failed to deduct the TDS from the salary of the employee— However, there can be cases where the victim is not a salaried person i.e. his income is from sources other than salary, and the annual income falls within taxable range, in such cases, if any objection as to deduction of tax is made by a party then the claimant is required to prove that the victim has already paid income tax and no further tax has to be deducted from the income—Income Tax Act, 1961, Sections 192(1), 201(A).

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