Budget 2025: ICAI Proposes Joint Tax Filing For Married Couples – Here’s How They’ll Benefit

New Delhi: As Union Budget 2025 approaches, the Institute of Chartered Accountants of India (ICAI) has put forward a proposal to introduce joint taxation for married couples. This would allow couples to be treated as a single taxable unit, enabling them to combine their incomes when filing taxes. Similar to systems in countries like the US and the UK.

"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?" wrote Chartered Accountant Chirag Chauhan on X.

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

ICAI's Proposal for Joint Income Tax Filing:

ICAI has suggested that married couples should have the option to file their income tax returns either individually or as a combined unit. The proposed tax slabs for couples filing jointly are as follows:

- Up to Rs 6 lakh: No tax

- Rs 6-14 lakh: 5 per cent 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

- Above Rs 30 lakh: 30 per cent tax

Under the joint filing system, the basic exemption limit would be increased from Rs 3 lakh to Rs 6 lakh. ICAI also recommends raising the surcharge threshold from Rs 50 lakh to Rs 1 crore.

The proposed surcharge rates would be:

- 10 per cent for income between Rs 1 crore and Rs 2 crore

- 15 per cent for income between Rs 2 crore and Rs 4 crore

- 20 per cent for income above Rs 4 crore.

Both partners would also be eligible for the standard deduction under the joint filing system.

Current Tax System for Married Couples: At present, married couples file their taxes separately, which often leads to higher taxes when one partner earns more than the other. This system is more beneficial for families where both partners are salaried, as they can each claim deductions individually. However, single-income families miss out on these advantages.