Amended and updated notes on section 5A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to apportionment of income between spouses governed by Portuguese Civil Code.
Chapter II (Sections 4 to 9A) of the Income Tax Act 1961 deals with the provisions related to basis of charge. Section 5A of IT Act 1961 provides for apportionment of income between spouses governed by Portuguese Civil Code.
Recently, we have discussed in detail section 5 (Scope of total income) of IT Act 1961. Today, we learn the provisions of section 5A of Income-tax Act 1961. The amended provision of section 5A is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 5A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-5A: Apportionment of income
Apportionment of income between spouses governed by Portuguese Civil Code.
Section 5A(1) of Income Tax Act
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.
Section 5A(2) of Income Tax Act
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 “Salaries“, such income shall be included in the total income of the spouse who has actually earned it.