What is Portuguese
Civil Code?
From A/Y 2013-14 there is a mandatory Column in income tax
return which asks – Are you governed by the Portuguese Civil Code? Now
the question what is Portuguese civil code meaning
What is Portuguese Civil Code?
The Portuguese Civil Code in India is applicable only to the state
of Goa and the Union territories of Dadra & Nagar Haveli and Daman &
Dui. If you are not governed by the laws of these
places, you should select “No” for
this question. However, in case you are governed by the laws of any of these
places, you should select “Yes”.
As per the Portuguese Civil Code, whatever income is earned by
the husband and the wife from all sources (except Salary Income from employment) shall be apportioned equally between both
the spouses. The income so apportioned shall be added to the total income of
each spouse separately and each spouse should disclose only his/her share of
income in the Income Tax Return.
As per Section 5A of the Income Tax Act, 1[ Apportionment
of income between spouses governed by Portuguese Civil Code
(1) Where the husband and wife are governed by the system of
community of property (known under the Portuguese Civil Code of 1860 as"
COMMUNIAO DOS BENS") in force in the State of Goa and in the Union
territories of Dadra and Nagar Haveli and Daman and Diu, the income of the
husband and of the wife under any head of income shall not be assessed as that
of such community of property (whether treated as an association of persons or
a body of individuals), but such income of the husband and of the wife under each
head of income (other than under the head" Salaries") shall be
apportioned equally between the husband and the wife and the income so
apportioned shall be included separately in the total income of the husband and
of the wife respectively, and the remaining provisions of this Act shall apply
accordingly.
(2) Where the husband or, as the case may be, the wife governed
by the aforesaid system of community of property has any income under the head
All incomes of individuals governed by the Portuguese Civil Code
are taxed in this manner except Income from salary earned form the employer.
Salary Income is not apportioned to both the spouses and is only the income of
the person who has earned it.
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