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In its pre-budget suggestion to the Finance Ministry the Institute of Chartered Accountants of India (ICAI) has urged the Centre to introduce joint income tax filing in Budget 2025 for married couples.
ICAI said that if accepted, this proposal could offer substantial tax relief and encourage equitable taxation for households. The ICAI has suggested a revised set of tax slabs under the Joint Taxation Scheme, providing a higher exemption limit and broader tax brackets. It said, "It is suggested to introduce an option for joint taxation of married couples by filing a joint return of income. Individuals may be given an option to pay tax under the Joint Taxation Scheme. They can choose to pay tax individually under the present scheme of taxation or opt for joint taxation of self and spouse." According to the proposal, married couples filing jointly would enjoy a tax exemption on income up to Rs 6 lakh, compared to the current Rs 3 lakh for individual taxpayers under the New Tax Regime. For higher income brackets, a progressive tax structure has been recommended: 5 per cent tax for income between Rs 6 lakh and Rs 14 lakh 10 per cent for Rs 14 lakh to Rs 20 lakh 15 per cent for Rs 20 lakh to Rs 24 lakh 20 per cent for Rs 24 lakh to Rs 30 lakh 30 per cent for income above Rs 30 lakh Additionally, salaried couples would benefit from separate standard deductions under Section 16(IA). The ICAI has also proposed increasing the surcharge threshold from Rs 50 lakh to Rs 1 crore. The suggested surcharge rates are 10 per cent for incomes between Rs 1 crore and Rs 2 crore, 15 per cent for Rs 2 crore to Rs 4 crore, and 25 per cent for incomes exceeding Rs 4 crore. The memorandum emphasizes that this scheme could ease the financial burden on families with a single earning member, a common scenario in India. Doubling the exemption limit and widening the tax brackets would align better with rising household expenses. The ICAI pointed out that similar schemes are already in place in countries like the United States, making the taxation system more family-oriented. The proposal also called for proportional adjustments in other limits, such as raising the threshold for the Alternate Minimum Tax (AMT) for those opting out of the default tax regime. (ANI)
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