Compensation awarded under MV Act must compute after Deduction of Income Tax: Andhra Pradesh High

The Andhra Pradesh High Court ruled that compensation awarded under the Motor Vehicles (MV) Act must be computed after deducting income tax from the deceased’s estimated future earnings. The court emphasized that the compensation should reflect the actual financial loss suffered by the dependents, which includes accounting for the tax liability on projected income. This decision ensures that the compensation is fair and accurately represents the financial impact on the beneficiaries, aligning with the principles of just and equitable compensation.