Before the presentation of the budget, ICAI suggested joint taxation!
On february 25, Finance minister Nirmala Sitharaman will present the general budget for the financial year 2025-26. However, before this, the Institute of Chartered Accountants of india (ICAI) has suggested joint taxation i.e. jointly filing income tax returns (ITR) to married couples. ICAI says that in terms of taxation, they should be seen as a unit.
Will married couples be able to file ITR together?
This system is already in place in countries like America and Britain. Under this, married couples will be able to file ITR by combining their income. This will reduce the tax burden on families and also stop tax evasion. ICAI says that married couples will be able to choose the option of individual or joint taxation for tax filing. Its benefit will be available to those families where only one person is earning and if both husband and wife earn, then they will also benefit from this system, it will reduce their tax liability.
Its benefit will be available in joint taxation
In joint taxation, husband and wife file a single income tax return and give information about income and deductions. In this, they will not need to file separate ITRs. In joint taxation, when both will file income tax return together, then the taxable amount will be decided on the basis of adding the income of both.
Tax burden on a person with single income
At present, husband and wife file separate ITRs. In such a situation, when the income of one is more than the other, then more tax has to be paid. When both husband and wife are working, then they can take advantage of deductions in different tax slabs, but a person with single income is not able to take advantage of this and the tax burden falls on him. Chartered accountant Chirag Chauhan has written on his official X account, ICAI has suggested joint taxation for married couples. In reality, there should be no tax on personal income up to Rs 7 lakh. If someone is married, the exemption limit for the family should be up to Rs 14 lakh. Will this new concept be introduced in Budget 2025?
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