If a person is dead due to an accident and if he was filing ITRs for the last 3 years; then the government is liable to give 10 times the average annual income of the last 3 years to that person’s family.
For example, if someone’s annual income is 4 lakh, 5 lakhs and 6 lakhs in the first, second and third years respectively, its average income is 10 times of five lakhs, i.e., 50 Lakh rupees. Thus, the family of that person is entitled to receive Rs. 50 lakhs from the Government.
In the absence of such information, people do not take this claim with the Government.
If any return is missing, mainly last three years, this could lower the claim amount or even no claim because court takes ITR as the only evidence. The court does not give that much importance to wealth record, FD’s, business, etc. as compared to ITR in the eyes of the law.
Many a time, people do not file ITRs regularly, or they take it lightly. Due to lack of information, the family receives no economic benefits.