Budget 2025: ICAI suggests joint tax filing, know how husband and wife can benefit?

Currently, husband and wife have to file separate income tax returns in the country. But now there is a demand to adopt the income tax system implemented in countries like America and Britain.

The Institute of Chartered Accountants of India (ICAI) has suggested to the central government to adopt a joint income tax return system for husband and wife. Now it has to be seen whether the government will adopt this system in this budget or not.

These families can get the benefit.
The benefit of filing separate income tax returns is available to those families where both husband and wife earn and the salary of one is more than the other. In such a case, the couple can claim separate deductions in tax. But single-income families have to remain deprived of this benefit.

The tax burden will be reduced.
In countries like America, joint income tax filing reduces the tax burden by combining income and giving additional deductions and credits. According to the claim, through joint filing, families can significantly reduce their tax liability by adopting additional deductions and more favorable tax rates.

ICAI gave suggestion

According to ICAI, in the joint income tax return system, married couples will be considered as a taxable unit. At the same time, while filing income tax returns, they will get the option to adjust their income. This will help them reduce their tax burden.

What will be the exemption limit?
Chartered Accountant Chirag Chauhan wrote on X that ICAI has suggested allowing married couples to file joint income tax returns. There is no tax on personal income of Rs 7 lakh. If married, the exemption limit for the family will be Rs 14 lakh.

Will help in preventing tax evasion
ICAI says that married couples should be given the freedom to choose either an individual or a new joint tax return system. It is claimed that families earning a single income will benefit from this system. This will also help in tax evasion. According to the proposal, the basic exemption limit in the system of filing joint returns will be doubled from the current Rs 3 lakh to Rs 6 lakh.

Proposed tax slabs for married couples filing income tax jointly

No tax up to Rs 6 lakh

Rs 6-14 lakh 5 percent tax

Rs 14-20 lakh 10 per cent tax

Rs 20-24 lakh 15 per cent tax

Rs 24-30 lakh 20 per cent tax

Rs 30 lakh and above 30 per cent tax

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