To bring about relief to Goan taxpayers, the income tax department is in the process of developing a new software to apportion income between Goan spouses covered under the Portuguese Civil Code.

Section 5A of the Income Tax Act, 1961, provides for the apportionment of non-salary income between the spouses governed by the system of community of property (which is in force in the state).

The income tax department, Panaji, has asked the Goa Chamber of Commerce and Industry (GCCI) to assist the Central Board of Direct Tax (CBDT), New Delhi, in coming up with a new software to ensure the smooth filling of IT returns for Goans under Section 5A of the Income Tax Act, 1961.

Speaking to STOI, chief commissioner of income tax D K Das Sharma said that e-returns are supposed to be filed by referring to the Portuguese Civil Code in corporate and auditable cases.

"It is difficult to divide the income between spouses and to modify the existing software available with the income tax department. Hence, we have asked the GCCI to assist system officers of the director general of income tax to prepare a new software which can apportion the income between Goan spouses covered under the Portuguese civil code," said Sharma.

GCCI, as well as the chapter of institute of chartered accountants, made a representation to income tax department and CBDT officials and pointed out that the general software, does not differentiate between taxpayers governed under Section 5A of the Income Tax Act and those that are not.

In the representation, it was pointed out that the existing software does not allow the apportionment of non-salary income and non-salary TDS of such Goan tax payers, thus causing unnecessary tension among them.

Stating that the new software is under the consideration of the CBDT, sources in the income tax department said that the new software needs careful screening as the benefits it offers to only a class of taxpayers could be misused.