Section 5A: A boon to Goans

The Income-Tax Act 1961 has a special provision exclusively for Goan married couples governed under Portuguese Civil Code which entitles them the benefit of division of Income in equal shares and consequent deduction claims resulting in substantial tax savings.

Ever since Income-Tax was introduced in Goa after liberation from April 1, 1963, there had been utter confusion and controversy as to the exact status of Goans for the purpose of filing their tax returns, since Goan couples married under Portuguese Civil code were entitled for equal shares in all the properties and income of the Communion.

In absence of any guidelines or legal precedents, tax returns were filed in the status of BOI, AOP and Individuals with different permutations and combinations of sources of income without any certainty. This was litigated before judicial authorities for over 30 years. The final blow came with the decision of Bombay High Court In Madhu Timblo’s case were it was held that entire income of both the spouses should be clubbed together and taxed. This would mean that every Goan couple, even small illiterate street vendor couples would have been liable for tax unknown to them with sword of Inspector raj constantly hanging on their heads.

 When various stake holders with the CA fraternity in forefront were contemplating steps to take to overcome this Judgement, including appeal to the Supreme Court which would have involved heavy costs with uncertain results, a small news item appeared in local papers about visit of Finance Minister Manmohan Singh to Goa to inaugurate a branch of the then unknown Bicholim Urban Co-operative Bank. 

The CA fraternity took this opportunity to fix a meeting with the FM through Harish N Zantye, then chairman and founder of the Bank and North Goa - Congress MP to present the case. Earlier to this meeting, I had the privilege to brief FM at Raj Bhavan in the presence of Mr Zantye, about the issues involved and how the High Court decision would be unjust to Goans who are honest and law abiding citizens. Hardly any congressmen turned up to pay even courtesy visit as he was considered a political light weight. He was convinced about our case and was favorably inclined to redress the grievances of Goans. For this I and two of my fellow colleagues had to follow up with CBDT Chairman, Law Secretary and Finance Ministry officials to make suitable amendment in the Income Tax Act with visits to North Block, New Delhi, just before the Budget session accompanied by MP Mr Zantye who ensured that we had easy access to these authorities. 

Ultimately this resulted in bringing new section 5A in Statute by Finance Act of 1994 with retrospective effect from 1-4-1963. Here it is worthwhile to know personality of H Zantye who facilitated this because of his special relationship with the FM. 

Harish Zantye popularly known as ‘Anna’ belongs to famous Zantye Cashew Family of Bicholim but his passion was with film industry, film distribution, social work and politics. His day would end around two in the night after getting collection reports from his chain of seven theaters which he would visit every day. He had tremendous tenacity and would achieve whatever he sets his mind on unmindful of costs, risks, and consequences. He was responsible for putting an end to MG Party’s rule in Goa of which he was treasurer by defeating then Chief Minister, Shashikala Kakodkar and was referred to as ‘Giant Killer’. He was cabinet minister in Goa government and was subsequently elected as MP of North Goa. He was also in midst of many local political storms. He had a warm pleasing personality with imposing figure in safari suit with his chubby innocent ever smiling child like face and always helpful to others. He had endeared himself in Parliament House with his charming personality and generous distribution of best quality Zantye cashew nuts, bag-loads of which he would carry during his regular weekly flights to New Delhi to attend Parliament sessions. He was known as ‘Kajuwala’ to Parlamentarians. Hardly anybody knew his real name. He pestered Finance Minister for inauguration of a new branch of Bicholim Urban Bank and virtually dragged him to Goa immediately after Parliament was adjourned and in the process developed close loving bonds with FM culminating in his visit 

to Goa.

Every generation of Goans should be grateful to Harish N Prabhu Zantye, ex- MP of North- Goa who is now 80 years age, the CA fraternity and Providence for the perpetual bounty bestowed on them through section 5A. ‘Anna’ has shown to us the power 

of MP.