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Supreme Court Sets Clear Rules for Road Accident Compensation Using ITR Data

Times of IndiaยทThursday, 2 July 2026
Supreme Court Sets Clear Rules for Road Accident Compensation Using ITR Data

The Supreme Court has laid down specific methods for calculating road accident compensation, separating salaried and self-employed victims. For salaried individuals, the previous year's income tax return will be the benchmark. For self-employed people, compensation will be based on the average of their last three years' ITRs to account for income fluctuations.

Why It Matters

Road accidents affect millions of Indians every year โ€” this ruling standardises how courts across the country calculate the money owed to victims or their families.

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