The Institute of Chartered Accountants of india (ICAI) recently proposed the concept of joint tax filing for married couples in the Budget 2025 recommendations. On paper, it sounds like a win-win for married couples. They get to combine their incomes, potentially benefit from higher tax slab thresholds, and reduce their overall tax liability. However, as with most policies, what seems to favor one group inevitably disadvantages another. And this time, it’s the unmarried folks – the 90s kids, single taxpayers like PM Modi himself, and countless others who shoulder the brunt of this system. 

Why Joint Tax Filing is Unfair to Unmarried Taxpayers

1. Discrimination Against Singles
Unmarried taxpayers already face the tax system alone – no deductions to split, no combined exemptions to enjoy, and no relief from shared financial responsibilities. Joint taxation for married couples would only widen this gap, effectively penalizing single individuals for their lifestyle choices or circumstances.

Take a 90s kid who is working hard, saving to buy a house, or supporting aging parents. They have no one to split their taxable income with. Meanwhile, a married couple living in a double-income-no-kids (DINK) setup gets to optimize taxes just because they tied the knot. Where’s the fairness in that?

2. Overlooking the "Unmarried Prime Minister" Taxpayer
If there’s anyone who embodies the single taxpayer in india, it’s none other than PM narendra Modi. Leading the country while single-handedly managing his financial responsibilities, Modi exemplifies how a single taxpayer contributes fully to the nation. Yet, under this proposal, people like him would lose out on benefits that married couples gain.

Joint tax filing essentially creates a class divide within taxpayers. It implies that being married is more "reward-worthy" in the eyes of the government, while singles – despite their equal or greater contributions to the workforce and economy – are left behind.

3. Who Really Suffers from Joint Tax Filing?
Beyond single individuals, this proposal has wider implications:

  • Women with Unequal Incomes: If a woman earns significantly less than her husband, joint tax filing might mean her income pushes their combined total into a higher tax bracket, resulting in a greater overall liability.
  • Middle-Class Unmarried Youth: Young professionals, particularly the 90s-born millennials, are already struggling with stagnant salaries, rising inflation, and housing costs. They’re also paying taxes at the same rates as high-income married couples who can now enjoy deductions.
  • Widows, Divorcees, and the LGBTQ+ Community: The policy doesn’t consider people who don’t fit into traditional marital norms. Joint tax filing privileges only one segment of society, ignoring the growing diversity in modern relationships.

The Bigger Picture: Taxing Fairness, Not Marital Status

This proposal risks alienating millions of unmarried indians who are already doing their part in paying taxes, funding government schemes, and contributing to India’s economy. While encouraging marriage indirectly might seem like a cultural nudge, a tax system should be neutral – rewarding individuals based on their contributions, not their marital choices.

Taxation policies should aim for inclusivity. For every couple that saves a few thousand rupees, there’s an unmarried taxpayer silently footing the bill. If fairness is truly the goal, perhaps ICAI should propose benefits that don’t pit married against unmarried. Otherwise, the Budget 2025 may be remembered as the year single taxpayers got left behind.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

budget 2025

Sindujaa D N

25/01/2025 09:57 PM