Section 10: apportionment of income between spouses governed by Portuguese Civil Code

Introduction

This is a special allocation rule, not a general option for married taxpayers. First establish that the couple is governed by the stated community-of-property system; only then classify each receipt under its income head.

Key takeaways

What Section 10 says

For husband and wife governed by this community-of-property system:

• Their income under any head of income is not assessed together as income of the "community of property" (whether treated as an association of persons or a body of individuals).
• Income under each head other than "Salaries" is divided equally between the husband and the wife.
• The income so divided is included separately in the total income of the husband and the wife respectively, and the rest of the Act applies accordingly.
• Where either spouse has income under the head "Salaries", that income is included in the total income of the spouse who actually earned it (it is not split).

Eligibility before calculation

Confirm the spouses' legal property regime and the stated territorial connection. Being married or jointly owning an asset does not alone make Section 10 applicable.

Record which receipts belong to each income head before dividing them; the salary exception applies by head, not by the spouse's choice.

Separate assessment after the split

For every non-salary head within the community income, allocate half to each spouse and include it in each spouse's separate total income.

Keep salary entirely with the spouse who earned it. Apply the remaining provisions of the Act separately to each taxpayer's resulting total income.

Step-by-step flow for applying Section 10

1. 1

   Are the spouses governed by the community of property system under the Portuguese Civil Code of 1860, in force in Goa or Dadra and Nagar Haveli and Daman and Diu?

   • No: Section 10 does not apply; each spouse is assessed on the ordinary rules.
   • Yes: Go to the next step.
2. 2

   Do not assess the community as a unit

   Under clause (a), their income is not assessed together as that of the community, whether treated as an association of persons or a body of individuals.

3. 3

   Split each non-salary head equally

   Under clause (b), income under every head other than "Salaries" is divided equally between husband and wife.

4. 4

   Allocate salaries to the earner and include separately

   Under clause (d), salary is included only in the total income of the spouse who earned it. Each spouse's share is then included separately under clause (c), and the rest of the Act applies.

Practical checklist

Glossary

Communiao dos bens

The community-of-property system under the Portuguese Civil Code of 1860 referred to by Section 10.

Frequently asked questions