Income Tax Tips: Can husband and wife file joint income tax return to save tax, know the rules..

 In modern times, people look for new ways to save tax. Many times it is also seen that husband and wife (Income Tax Returns) together file tax returns by showing their income together. Some people feel that they can get some relief in taxes by doing this. However, this method is not beneficial for everyone, because it has many legal and financial aspects, which need to be followed properly.

This suggestion has been given -

The Institute of Chartered Accountants of India (ICAI) has suggested to the government that married couples can file tax returns together (Joint Taxation for Married Couples). Its purpose is to reduce the burden of increased taxes on families. This will double their tax exemption (ICAI tax proposal) to Rs 6 lakh and this step will also curb tax evasion. Apart from this, tax rates have also been determined in this scheme so that the process of paying tax can be made even simpler.

This system is already applicable in many countries -

According to the suggestion of ICAI, if husband and wife file returns together, then their tax liability will be reduced on the basis of the average income of both. In such a situation, the Joint Taxation Scheme can prove to be effective for married couples. This type of system is already applicable in some countries, such as America and England. Currently, people can choose either a special tax scheme or general tax rules.

This new rule has been suggested regarding standard deduction -

According to ICAI, there should be no tax (tax rules on annual income) on annual income up to Rs 6 lakh. If the income is between Rs 6 lakh to Rs 14 lakh, then only 5 percent tax should be payable. If the income is between Rs 14 lakh to Rs 20 lakh, then a 10 percent tax should be levied (tax rules in India). At the same time, a 15 percent tax should be levied on income from Rs 20 lakh to 24 lakh, 20 percent from Rs 24 lakh to 30 lakh, and 30 percent on more than Rs 30 lakh. Apart from this, if both husband and wife work somewhere, then both of them should get a chance to take advantage of the exemption from the standard deduction.

What is the personal exemption limit -

At present, taxpayers have two options, either they can choose the default tax scheme under section 115BAC or follow the normal tax rules. Apart from this, if a person follows the new or default regime, then his personal exemption limit for income tax i.e. basic exemption limit can increase from Rs 2.5 lakh to Rs 3 lakh, which gives some relief to the taxpayer.

The current tax system is not enough -

In many families in India, usually only one person earns, due to which economic pressure is increasing due to rising prices and inflation. In such a situation, this tax system is not enough. The joint taxation discount that is currently available is very low, especially for those families that have four members. In such a situation, people try to save tax (tax saving tips) by putting their earnings in the name of the rest of the family members.

Income tax slabs on income more than 1 crore -

Apart from this, ICAI has proposed in its recommendation to increase the surcharge limit that if a person's income is more than Rs 1 crore (Income Tax slab), then special rates should apply to him. For example, if someone's annual income is between Rs 1 crore and Rs 2 crore, then a 10 percent additional fee (Tax surcharges rules) will be levied on it. If the income is from Rs 2 crore to Rs 4 crore, then a 15 percent surcharge will be levied. If the income is more than Rs 4 crore, a 25 percent surcharge will be levied.

What is the benefit of joint taxation -

For people who have a big difference in income, filing tax returns jointly can be beneficial. When both of them file tax returns (ITR filing) by combining their income, they may have to pay less tax. The reason for this is that the tax can be less according to their total income, which will benefit them compared to filing separate returns (income tax Return filing). Now it remains to be seen whether this suggestion can be accepted in the 2025 budget.

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