AUBSP»Income Tax»Taxpayers»Section 5A of Income-tax Act 1961-2017 – Apportionment of income between spouses

Section 5A of Income-tax Act 1961-2017 – Apportionment of income between spouses

Detail analysis of the provisions of Section 5A (Apportionment of income between spouses governed by Portuguese Civil Code) of Income-tax Act 1961 as amended by latest Finance Act 2017.

Chapter II (Sections 4-9A) of Income Tax Act, 1961 deals with provisions related to Basis of Charge. Section 5A of Income Tax Act 1961-2017 provides for 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 “Salaries”, such income shall be included in the total income of the spouse who has actually earned it.

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