Section 5A: Apportionment of Income Between Spouses Governed by Portuguese Civil Code
Section 5A of the Income-tax Act, 1961 provides a special method for assessing spouses governed by the Portuguese Civil Code community of property regime. From 1 April 2026, the corresponding rule appears in Section 10 of the Income-tax Act, 2025.
Meaning of community of property
Communiao dos bens refers to the community of property system under the Portuguese Civil Code of 1860, applicable to spouses governed by that regime in Goa and the Union territories of Dadra and Nagar Haveli and Daman and Diu. Eligibility depends on the applicable matrimonial property regime; merely residing in Goa does not automatically establish eligibility.
How income is apportioned
Under Section 5A(1), income under each head other than Salaries is apportioned equally between the husband and wife and included separately in their total incomes. The community itself is not assessed as an association of persons or body of individuals for such income. Under Section 5A(2), salary income is assessed only in the hands of the spouse who actually earns it.
The same broad approach is retained in Section 10(a) to (d) of the Income-tax Act, 2025. The rule determines allocation between spouses; the taxability, computation, exemptions and deductions for each income head must still be examined under the applicable law.
Practical example
Assume qualifying community income from house property is Rs. 6,00,000 and qualifying business income is Rs. 4,00,000. The aggregate Rs. 10,00,000 is apportioned as Rs. 5,00,000 to each spouse, subject to the applicable computation provisions. If one spouse separately earns Rs. 8,00,000 in salary, that salary remains wholly taxable in the hands of the earning spouse.
| Income category | Husband | Wife |
|---|---|---|
| House property: Rs. 6,00,000 | Rs. 3,00,000 | Rs. 3,00,000 |
| Business: Rs. 4,00,000 | Rs. 2,00,000 | Rs. 2,00,000 |
| Salary earned by husband: Rs. 8,00,000 | Rs. 8,00,000 | Nil |
| Illustrative allocated income | Rs. 13,00,000 | Rs. 5,00,000 |
Illustration only; not a calculation of taxable income or tax liability. Actual apportionment and return reporting depend on the relevant facts and statutory rules.
Original Section 5A of the Income-tax Act, 1961
Sub-section (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.
Sub-section (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.
Legislative note: Inserted by Act 32 of 1994, section 4, with effect from 1 April 1963 (as noted in the original page).
Corresponding Section 10 of the Income-tax Act, 2025
Section 10 states that where spouses are governed by the relevant community of property system: (a) their income is not assessed together as community income; (b) non-salary income under each head is divided equally; (c) each spouse separately includes the allocated amount in total income; and (d) salary is included in the total income of the spouse who earned it.
See the official Income-tax Act, 2025 (PDF) and the Income Tax Department's 2025 Act resources.
Tax return reporting and records
Eligible spouses should review the applicable income-tax return form and its Schedule 5A or corresponding reporting requirements, including spouse identification, income under each head and any tax deducted at source allocation. Maintain evidence of the matrimonial property regime, income records and applicable TDS details. See the Income Tax Department's Schedule 5A guidance for an example of reporting fields.
Official legal references
Income Tax Department: Section 5A, Income-tax Act, 1961; Income-tax Act, 1961 as amended by Finance Act, 2025 (PDF); Income-tax Act, 2025 (official PDF).
Frequently asked questions
Is salary income shared equally?
No. Salary is included in the income of the spouse who actually earned it.
Does this rule apply to every married couple in Goa?
No. The couple must be governed by the relevant community of property system.
What provision applies from 1 April 2026?
Section 10 of the Income-tax Act, 2025 is the corresponding provision, subject to applicable transitional and savings rules for earlier periods.
This article provides general legal information and does not replace advice based on individual facts.