Why is Portuguese Civil Code Applicability Asked in the Income Tax Return

While filing your income tax return, you may have come across an unusual question "Are you governed by the Portuguese Civil Code under Section 5A?". Due to various tax implications for persons governed by the Portuguese Civil Code, you must include these facts on your income tax return. This article covers the concept of the Portuguese Civil Code's applicability and tax ramifications in detail.

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Table of Contents

• What is the Portuguese Civil Code?

• Section 5A of the Income Tax Act: Apportionment of Income Between Spouses Governed by Portuguese Civil Code

• Steps to Update the Applicability of the Portuguese Civil Code

• Comparison Between the Portuguese Civil Code Law and Other Indian Civil Code Laws

• Conclusion

• Frequently Asked Questions

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What is the Portuguese Civil Code?

India has a common-law jurisdiction, meaning that marriage is not a contract and that any contract pertaining to marriage is void. The Goa Civil Code, also referred to as the Goa family law, is different from the rest of India. Essentially , it is based on the Portuguese Civil Code. The law is applicable to all residents of the area, regardless of their religious beliefs. The marriage options under this law are as follows:

• Community property: Each spouse immediately acquires joint ownership of the assets they already hold as well as those they have inherited under community property law; in other words, all of the assets (and liabilities) are included in the definition of common property.

• The absolute separation of property

• Separation of assets that existed before marriage and communion of the property post-marriage

• Dotal regime: It is the clause that gives the husband ownership of the wife's property, which he would then have to return in the event of the marriage's dissolution or death. Regardless of their religious origin or the laws pertaining to them, all Goan citizens are covered by these clauses. Specifically, one spouse cannot dispose of or restrict these assets in any way without the other's express and direct approval. Women are so shielded and spared from the possibility that their husbands will carelessly waste their capital assets or manage them in accordance with their own personal preferences.

The community property law takes effect automatically if no explicit contract specifies a marital choice. According to community property law, the spouse's entire premarital assets (and liabilities), in addition to any inherited assets, are combined into the community property. A 50% portion of the aforementioned property is now due to each spouse. Likewise, the other spouse receives half of each spouse's income. One spouse cannot dispose of or encumber such assets without the other's express approval.

Section 5A of the Income Tax Act: Apportionment of Income Between Spouses Governed by Portuguese Civil Code

According to the Income Tax Act of 1961, income in India is taxable in the hands of the person who earns it. This rule does have an exception, though, in the instance of Section 5A. This section only applies to the state of Goa and addresses the sharing of income between couples, which is governed by the Portuguese Civil Code.

The legislation stipulates that the husband and wife must split the total amount of money they make from all sources equally, barring income from long-term employment or just compensation or salary from the job. Each spouse must declare only their portion of the income on their income tax return, and the money distributed will be added to their individual total income. The reason for this is that the Community of Property Law governs 98 percent of marriages.

Steps to Update the Applicability of the Portuguese Civil Code

To update the Portuguese Civil Code's applicability in the new income tax portal, follow these steps:

Step 1: Log in to www.incometax.gov.in

Step 2: Select "My Profile" from the upper right corner.

Step 3: Scroll down below the "My Profile" page and select the "Portuguese Civil Code Applicability" option in the left pane.

Step 4: The income tax portal will ask you if you are covered by the Portuguese Civil Code.

Step 5: If you live in Goa and the Union Territories of Dadra and Nagar Haveli and Daman and Diu, choose "Yes." If not, choose "No."

Step 6: If you choose "Yes," enter your spouse's PAN and Aadhaar number in the appropriate fields below.

Step 7: After that, click "Add," and your income will be connected to your spouse's PAN.

Comparison Between the Portuguese Civil Code Law and Other Indian Civil Code Laws

There are many different castes and faiths in India, and each group has its own set of beliefs. Their beliefs are based on a particular set of laws that were created with the numerous customs that religion observes in mind. Hindu Marriage Act of 1955, Hindu Minority and Guardianship Act of 1956, Hindu Adoptions and Maintenance Act of 1956, Hindu Succession Act of 1956, and Hindu Disposition of Property Act of 1916 are a few instances of Hindu personal laws. Sikhs, Jains, and Buddhists are also included under the general term "Hindu" for the purposes of these statutes.

Although the foundation of Muslim personal law is found in religious texts, laws like the Dissolution of Muslim Marriages Act and the Shariat Application Act specifically acknowledge some aspects of these texts in India. All Christian marriages and divorces in India fall under the purview of the Indian Christian Weddings Act.

On the other hand, all Goan citizens come under the Portuguese Civil Code of 1867, no matter what their ethnicity or faith is. The same set of civil laws that have been applicable since 1867 will still be in effect if you are a citizen of Goa. The Uniform Civil Code's concept conflicts with the right to freedom of religion, notwithstanding its emphasis on equality before the law (Article 25).

Conclusion

The Portuguese Civil Code extends to all residents of the territory where it is applicable, regardless of their religion, despite the fact that India has distinct civil laws for several religious sects. The Indian Army only freed these areas from Portuguese dominion in 1961 after they had been under Portuguese control for more than 400 years. All Portuguese laws expired after 1961, and the Indian Parliament expanded its legislative authority to include these states. Nonetheless, some laws, such as the Portuguese Civil Law, were not overturned and are still in force today. You must update your profile on the new income tax portal if you come under the Portuguese civil law. You and your spouse will gain from splitting your total income equally.

Frequently Asked Questions

1. What is the Portuguese Civil Code of Goa?

   The Portuguese Civil Code (Código Civil Português) of 1867, came into effect in Goa in 1870. Eventually, it was extended to the Portuguese Overseas Provinces by Decree of 18 November 1869. The code served as the foundation for the Goa civil code.

   
   

2. What is the law of communion in Goa?

   The Goan code does not consider marriage as an institution, but rather as a legal contract between the spouses. "It is an asset communion—a communion of two individuals and their assets and holdings. This implies that each spouse becomes a co-owner of the other's assets as soon as they get married.

   
   

3. Is the Portuguese Civil Code applicable in Goa?

   All Christian marriages and divorces in India are governed and overseen by the Indian Christian Weddings Act. In contrast, all Goan citizens are covered by the Portuguese Civil Code of 1867, irrespective of their ethnicity or faith. Being a Muslim, Christian, or Hindu has no bearing on the applicability of this code.

   
   

4. Who comes under the Portuguese Civil Code Law?

   Goa and the Union Territories of Daman and Diu, and Dadra and Nagar Haveli, are the only places where the Portuguese Civil Law is applicable.

   
   

5. Is the Portuguese Civil Code a Uniform Civil Code?

   A unified civil code is a single body of laws that governs personal matters like marriage, divorce, custody, adoption, and inheritance for all Indian citizens. Since Goa has common family law, it is the sole state in the country with a uniform civil code that is applicable to all citizens of the state, regardless of their caste, religion, creed, gender, or sexual orientation. In Goa, everyone is subject to the same fundamental laws regarding succession, marriage, divorce, and custody.