Schedule 5A - Portuguese Civil Code

by Gurudas
(Mumbai)

Question

I am a Goan, my marriage was registered under the Civil Registration Services of Goa. I have a salaried job in Mumbai.

My non salary-income primarily comprises of interest from FD accounts and some occasional capital gains. My wife is a home maker and does not have any income.

The 2013 ITR form has a field that asks 'Are you governed by Portuguese Civil Code?' This has been added specifically to address the needs of tax payers from Goa and UTs of Dadra and Nagar Haveli and Daman & Diu.

In this regard, I have the following questions:

(a) Does the fact that my marriage is registered under the Civil Registration Services of Goa make me eligible to be assessed as per section 5A? Is there any other eligibility criteria?

(b) I have some FD accounts where I am the sole account holder. For simplicity, assume that the interest earned was 4 lakhs and TDS deducted was 40,000. This TDS of 40,000 correctly shows against my PAN in my 26AS. Can I then, in my return, declare 2 lakhs (one half of the total) in the "Income from Other Sources" field and yet claim credit for the full TDS of 40,000 in my return? I would declare the remaining 2 lakhs in my wife's return. Will there be any issue because of the fact that (a) I am the sole account holder but the income is being apportioned (b) Income is apportioned, but TDS credit is only to one of the assessee.

(c) Also, I have been wondering if the CPC software is ready to handle such cases. For example, if there is a process to check the interest amount paid by the deductor with the interest declared by the deductee in his return, then unless it takes this special scenario into consideration, the check might report a mismatch in my case. (4 lakhs paid vs. 2 lakhs declared).



Thanks in advance for your replies!



Answer

The question is very interesting. Though the Goan Civil Code is a Code developed from the Portuguese Civil Code 1860, it is not clear whether the Portuguese Civil Code 1860 is applicable to the persons governed by the Goan Civil Code. If PCC, 1860 is applicable to the cases of Goan Civil Code, then the answers are: -

(a) Yes, merely entering into marriage will make the Portuguese Civl Code applicable.

(b) TDS can be claimed only to the extent the income is offered in your hands. As per section 200(3) of the Income-tax Act, read with Rule 37BA,in case income is included in the hands of another the deductee can intimate the deductor that the income is assessable in the hands of the another person (name of the other person, his address and PAN) and the Deductor can issue the TDS Certificate in the name of the Other Person.

(c) Where there is a law the implementation has to be done in accordance with the law. The rules or regulations or the failure of the collection or assessing machinery to do it in accordance with the law is not an excuse.

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