Centre fixing tax demand errors faced by Goans under Portuguese code

Panaji: Union finance minister Nirmala Sitharaman said on Wednesday that there has been a 470% increase over four years in the incorrect tax demands made on Goans who fall under the Portuguese Civil Code while filing income tax returns. She said that the income tax processing centre at Bengaluru is carrying out “suo-motu rectification” to ensure that taxpayers’ difficulties are resolved.
Additionally, major steps have been taken to fast-track the disposal of pending appeals and strengthen guidelines on this issue, said Sitharaman.
Section 5A of the Income Tax Act allows a couple governed by the Portuguese Civil Code to file income tax returns by equally dividing the income between the husband and wife. The same benefit applies to tax deducted at source.
“CPC Bengaluru is carrying out suo-motu rectification to ensure that taxpayers in Goa are not unfairly burdened under the faceless regime,” said Sitharaman in a written reply to the Rajya Sabha.
Rajya Sabha MP Sadanand Shet Tanavade raised the issue of Goan taxpayers facing difficulties due to non-division or incorrect division of tax deducted at source amounts between spouses.
In 2021-22, there were 243 cases from Goa where erroneous tax demands were raised. According to the finance ministry’s data, this figure increased to 301 in 2022-23. In 2023-24, there were 1,076 cases, and the number continued to rise in 2024-25 to 1,388 cases.
“The suo-motu rectification in almost all these categories of cases has already been carried out by CPC, Bengaluru,” said Sitharaman.
The finance ministry said that eight different steps have been taken to fast-track cases.
Of the 3,008 cases where tax demands were raised, suo-motu rectification has been carried out for 2,975 cases. Sitharaman said that rectification is pending in 33 cases, with some tax notices being appealed.
Panaji: Union finance minister Nirmala Sitharaman said on Wednesday that there has been a 470% increase over four years in the incorrect tax demands made on Goans who fall under the Portuguese Civil Code while filing income tax returns. She said that the income tax processing centre at Bengaluru is carrying out “suo-motu rectification” to ensure that taxpayers’ difficulties are resolved.
Additionally, major steps have been taken to fast-track the disposal of pending appeals and strengthen guidelines on this issue, said Sitharaman.
Section 5A of the Income Tax Act allows a couple governed by the Portuguese Civil Code to file income tax returns by equally dividing the income between the husband and wife. The same benefit applies to tax deducted at source.
“CPC Bengaluru is carrying out suo-motu rectification to ensure that taxpayers in Goa are not unfairly burdened under the faceless regime,” said Sitharaman in a written reply to the Rajya Sabha.
Rajya Sabha MP Sadanand Shet Tanavade raised the issue of Goan taxpayers facing difficulties due to non-division or incorrect division of tax deducted at source amounts between spouses.
In 2021-22, there were 243 cases from Goa where erroneous tax demands were raised. According to the finance ministry’s data, this figure increased to 301 in 2022-23. In 2023-24, there were 1,076 cases, and the number continued to rise in 2024-25 to 1,388 cases.
“The suo-motu rectification in almost all these categories of cases has already been carried out by CPC, Bengaluru,” said Sitharaman.
The finance ministry said that eight different steps have been taken to fast-track cases.
Of the 3,008 cases where tax demands were raised, suo-motu rectification has been carried out for 2,975 cases. Sitharaman said that rectification is pending in 33 cases, with some tax notices being appealed.