Goa Communion of Property: How Spouses' Income Is Split Under the Income Tax Act 2025 (Section 10)

Section 10 of the Income-tax Act, 2025 covers married couples governed by the community of property system (Comunhão dos Bens) under the Portuguese Civil Code of 1860, which is in force in Goa and in the Union Territories of Dadra and Nagar Haveli and Daman and Diu. Their income under every head other than Salaries is divided equally between husband and wife, and each half goes into that spouse's own total income. Salary stays with the spouse who actually earned it.

This guide explains what the section says, how the 50:50 split works head by head, which return forms such couples cannot use, and the mistakes that cause trouble. Every point comes from section 10 of the Act (as amended by the Finance Act, 2026) and rule 164 of the Income-tax Rules, 2026. Last reviewed against that text on 10 November 2026. This is information, not tax advice.

What does section 10 of the Income-tax Act, 2025 say?

Section 10 applies when a husband and wife are governed by the community of property system described above. It then does four things:

Clause	What it does
Section 10(a)	Income under any head is not assessed together as the income of the "community of property". The community is not taxed as an association of persons or a body of individuals.
Section 10(b)	Income under each head other than "Salaries" is divided equally between husband and wife.
Section 10(c)	The divided income is included separately in the total income of the husband and of the wife. The rest of the Act then applies to each of them.
Section 10(d)	Income under the head "Salaries" of either spouse is included in the total income of the spouse who actually earned it.

Who is covered by the community of property rule?

The test in the section is the legal regime of the marriage, not the surname, religion or address on a PAN card. The couple must be governed by the Comunhão dos Bens system of the Portuguese Civil Code of 1860 as in force in Goa, Dadra and Nagar Haveli, and Daman and Diu. Whether a particular couple is governed by that system is a question of family law, so check the marriage records (for example, any pre-marriage agreement) before applying the section. The text of the section does not give a list of documents, and this guide does not add one.

How is income divided between the spouses?

The division is done head by head. First work out the community's income under each head, such as house property, business or profession, capital gains and other sources. Then, for every head except Salaries, give half to each spouse. Each spouse reports that half under the same head in their own return.

Why is salary not divided?

Section 10(d) keeps salary with the spouse who actually earned it. A wife's salary from her employer is her income alone, and a husband's salary is his alone, even though the couple's other income is shared equally. This matches how salary works elsewhere: it depends on who rendered the service, not on who owns the family property.

How do you work out each spouse's income? Two worked examples

Example 1: both spouses earn a salary, tax year 2026-27. Ravi and Meena are governed by the community of property system. Assumptions: Ravi's salary is Rs 18,00,000 and Meena's is Rs 9,00,000. The community's other income for the year is house property Rs 4,00,000, other sources Rs 1,20,000 and business Rs 6,00,000 (all figures are the income under each head, already computed).

Head	Community amount (Rs)	Ravi (Rs)	Meena (Rs)
Salaries	Not divided	18,00,000	9,00,000
House property	4,00,000	2,00,000	2,00,000
Other sources	1,20,000	60,000	60,000
Business	6,00,000	3,00,000	3,00,000
Total income		23,60,000	14,60,000

Check: shared income is 4,00,000 + 1,20,000 + 6,00,000 = Rs 11,20,000, so each half is Rs 5,60,000. Ravi: 18,00,000 + 5,60,000 = Rs 23,60,000. Meena: 9,00,000 + 5,60,000 = Rs 14,60,000. Tax is then worked out separately for each of them under the normal provisions (section 10(c)). This example is before any deductions.

Example 2: only one spouse has a salary. Assumptions: Meena's salary is Rs 12,00,000 and Ravi has none. The community has house property income of Rs 2,40,000, other sources Rs 90,000 and capital gains Rs 3,00,000.

1. Shared income: 2,40,000 + 90,000 + 3,00,000 = Rs 6,30,000.
2. Each spouse's half: 6,30,000 / 2 = Rs 3,15,000.
3. Ravi's total income: Rs 3,15,000 (no salary).
4. Meena's total income: 12,00,000 + 3,15,000 = Rs 15,15,000.

Ravi has to file for himself even though he earns no salary, because he is assessed on his half of the shared income. Whether a return is actually required depends on the filing rules for his total income, which are covered in our guide on who must file an income tax return.

Which ITR form can such a couple use?

Rule 164 of the Income-tax Rules, 2026 lists who cannot use the simpler forms. A person who has income to be apportioned under section 10 is not eligible for Form SAHAJ (ITR-1) (rule 164(3)(d)) or Form SUGAM (ITR-4) (rule 164(6)(d)). So a Goa community couple with shared income cannot use these forms for that year, and the return form depends on the other rules in rule 164. For example, an individual who is not eligible for ITR-1 and has no business or profession income files Form ITR-2 (rule 164(4)); an individual or HUF with business or profession income that does not fit the earlier sub-rules files ITR-3 (rule 164(7)).

Form	Can a spouse with section 10 income use it?	Rule
Form SAHAJ (ITR-1)	No	164(3)(d)
Form SUGAM (ITR-4)	No	164(6)(d)
ITR-2 / ITR-3	Depends on the other facts; ITR-2 for individuals without business or profession income who are outside ITR-1, ITR-3 where there is business or profession income	164(4), 164(7)

Real-life examples

A Panaji couple with a rented flat. Ravi and Meena own a flat in Panaji in community of property and let it out. Neither of them reports the full rent in one return. Each reports half of the house property income in their own return, and Meena keeps her teaching salary entirely in hers.

A business run by one spouse. Joaquim runs a small shop in Margao and his wife Maria works at home. Under section 10(b), the business income is shared 50:50, so Maria has income from business in her own return even though Joaquim runs the shop. The community is not taxed as a separate association of persons or body of individuals (section 10(a)).

A couple not under the community system. Anil and Sunita live in Goa but are not governed by the community of property system. Section 10 does not apply to them, so the 50:50 rule is not available and their income is assessed as it normally would be for any married couple. Our post on clubbing of income of spouse and minor child covers the general position.

Common mistakes

• Splitting salary. Salary is never divided under section 10(d). It stays with the spouse who earned it.
• Assessing the community as one taxpayer. Section 10(a) says the community is not assessed as an association of persons or a body of individuals.
• Filing ITR-1 or ITR-4. Rule 164 bars both forms when income has to be apportioned under section 10.
• Splitting in total instead of head by head. The division is under each head. Combine and halve each head, then add each spouse's own salary.
• Assuming every Goa resident is covered. The section applies only when the couple is governed by the community of property system.

Quick reference

Item	Treatment
Applies to	Spouses governed by Comunhão dos Bens in Goa, Dadra and Nagar Haveli, Daman and Diu
Non-salary income	Divided equally under each head
Salary	Stays with the earner
Community as taxpayer	Not assessed (not an AOP or BOI)
ITR-1 and ITR-4	Not available where section 10 apportionment applies

Where this is in the Act

• Section 10: apportionment of income between spouses governed by the Portuguese Civil Code, clauses (a) to (d)
• Rule 164(3)(d): ITR-1 eligibility
• Rule 164(6)(d): ITR-4 eligibility
• Rule 164(4) and (7): ITR-2 and ITR-3

How a CA firm can keep track of this

For a practice with clients in Goa, the work is spotting which couples fall under section 10 and making sure both returns use matching figures for the shared income. Finexo's practice management software lets you keep the spouses' files linked, track return due dates for each, and note the form chosen. It does not compute tax or file returns for you.