Budget 2025: The Institute of Chartered Accountants of India (ICAI) has suggested adopting a new tax filing system in the country. A few days later, the central government will present its budget on February 1. If this new system is implemented, married couples can benefit from it. They will be able to reduce their tax burden.
At present, 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 applicable in countries like America and Britain in the country.
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 remains to be seen whether the government adopts this system in this budget or not?
These families can get 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 deduction in tax. But single income families have to be deprived of this benefit.
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 reduce their tax liability significantly 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 individual or the new joint tax return system. It is claimed that families earning single income will benefit from this system. This will also help in curbing tax evasion. According to the proposal, the basic exemption limit for joint filing of returns will be doubled from the current Rs 3 lakh to Rs 6 lakh.
Proposed tax slabs for married couples filing income tax jointly
| Up to Rs 6 lakh | No Tax |
| Rs 6-14 lakh | 5 percent tax |
| Rs 14-20 lakh | 10 percent tax |
| Rs 20-24 lakh | 15 percent tax |
| Rs 24-30 lakh | 20 percent tax |
| Above Rs 30 lakh | 30 percent tax |
ICAI suggests allowing joint income tax return filing for married couples. Ideally, an individual income of ₹7 lakh is exempt from tax; if married, the exempt limit for the family would be ₹14 lakh.
Will #budget2025 introduce this new concept?
— CA Chirag Chauhan (@CAChirag) January 7, 2025
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