TDS credit apportionment under section 5A applies to spouses governed by the Portuguese Civil Code, not full credit in one name.

Section 5A requires income of spouses governed by the Portuguese Civil Code to be apportioned between them, and the remaining provisions of the Income-tax Act apply accordingly. On that basis, tax deducted at source is treated as income received under section 198, and the expression "assessee" must be understood in the context of both spouses covered by section 5A. Rule 37BA(2) of the Income-tax Rules, read with its proviso, supports a declaration where the income is assessable in another person's hands. The text states that full TDS credit in one spouse's hands is not available and that the credit is to be apportioned.

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Issues: Whether the assessee, being governed by section 5A of the Income-tax Act, 1961, was entitled to claim full TDS credit in his own hands or whether the TDS credit had to be apportioned between the spouses.

Analysis: Section 5A is a special provision applicable to spouses governed by the Portuguese Civil Code and it requires apportionment of income between them. The reasoning proceeded on the basis that the remaining provisions of the Act apply accordingly, that amounts deducted at source are deemed to be income received under section 198, and that the expression "assessee" must be read in the context of both spouses covered by section 5A. Rule 37BA(2) of the Income-tax Rules, 1962, read with its proviso, was also relied upon to hold that the deductee was required to furnish the necessary declaration where the income is assessable in another person's hands.

Conclusion: The claim for full TDS credit in the assessee's hands was rejected and the TDS credit was held to be consequentially apportionable; the issue was decided against the assessee and in favour of the Revenue.

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