Income Tax Online for Joint Filers: ICAI Proposes Joint Tax Filing for Married Couples
- Farheen Mukadam
- Jul 15
- 8 min read
In India, a person's taxable income is determined by a number of variables, including their marital status, type of income, and place of residence. You will be regarded as married even if you get married on the last day of the financial year, and as a result, the tax laws will be in effect for the full year. Couples are not permitted to file their taxes together in India. However, by paying their taxes separately, couples can save a significant amount of money. Additionally, you can maximise your tax savings through your spouse thanks to certain incentives. Let's see how.
Table of Contents
ICAI Proposes Joint Tax Filing for Married Couples
By proposing a shared taxation system for married couples, the Institute of Chartered Accountants of India (ICAI) hopes to alter the nation's tax structure. This suggestion follows a more thorough examination of the Income-tax Act of 1961 in preparation for the Union Budget of 2025. Couples might file taxes as individuals or as a single taxable unit under the new approach, which could double the basic exemption limit for joint filers.
A committee at the Central Board of Direct Taxes (CBDT) level is now reviewing the recommendations that ICAI presented for the review of the Income-tax Act in January 2025. The goal of the proposal is to curb tax evasion and lessen the tax burden on households with a single primary earner. The basic exemption limit for couples filing jointly would be raised from Rs. 300,000 to Rs. 600,000 as one of the system's modifications.
Since married couples must currently file taxes individually in India, households with only one income may see greater tax bills. According to ICAI, changes are required to alleviate the financial strain on families because the present basic exemption ceiling does not account for India's growing cost of living.
Proposed Tax Slabs for Joint ITR Filing as a Married Couple
The following tax slabs have been proposed for married couples for joint ITR filing:
Up to Rs 6 lakh: No tax
Rs 6-14 lakh: 5 % tax
Rs 14-20 lakh: 10 % tax
Rs 20-24 lakh: 15 % tax
Rs 24-30 lakh: 20 % tax
Above Rs 30 lakh: 30 % tax
Raising the surcharge level from Rs 50 lakh to Rs 1 crore is another recommendation made by the ICAI. The following is how the surcharge would be applied:
Rs 1-2 crore: 10 % surcharge
Rs 2-4 crore: 15 % surcharge
Above Rs 4 crore: 25 % surcharge
Current Tax Filing System for Married Couples in India
When one spouse earns more than the other, the current practice of married couples filing taxes separately in India may result in greater taxes. Families with two earners benefit from the system more because each partner can claim deductions separately. Families with only one income, however, are not eligible for these advantages. By merging incomes and providing additional deductions and credits, joint filing lowers the overall tax burden in nations like the USA. The ICAI has also expressed concern that, given the expense of living, the present basic exemption limit is inadequate. Families have been advised to consider transferring money to other family members in order to lower their tax liabilities.
For income tax reasons, each spouse is considered an individual and is required to file their own income tax return. The following are some crucial things to remember:
Filing Status: Married couples are required to submit their individual income tax returns. The option to file income tax returns jointly is not included.
Tax Slabs: Depending on their respective income levels, each spouse will be taxed in accordance with their own income tax slab. The old tax system and the new tax regime are the two tax regimes that are accessible to individuals in India. The new tax regime was implemented in the financial year 2020–21 with the intention of streamlining the tax structure and lessening the tax burden on taxpayers. The old tax regime has been in effect for a number of years. The choice between the new tax regime and the old tax regime rests with the individual taxpayer. Their income level, available deductions, and tax planning needs will all influence their decision.
Deductions: Under different provisions of the Income Tax Act, each spouse may individually claim the deductions that are allowed. For instance, donations to the National Pension Scheme (NPS), Employee Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), and Public Provident Fund (PPF) are among the possibilities that can be deducted under Section 80C. Additional deductions are available under Section 80G for charitable contributions and Section 80D for health insurance payments.
Conclusion
The joint filing system for married couples in India has not been implemented as of now. However, as a married couple, you can leverage the existing system to claim benefits with some tax planning decisions. Transferring funds to your spouse's account as a token of appreciation will lessen your tax burden. The Token of Appreciation has no tax associated with it. It is essential to speak with a qualified tax advisor to learn more about your tax obligations and how you can maximize your benefits as a couple.
Frequently Asked Questions
Is there joint tax filing in India?
A separate ITR has to be filed by each individual. In India, joint filing is not allowed.
Why do married couples file taxes separately?
Spouses' earnings are usually kept in separate individual accounts. Therefore, provisions for jointly filing taxes may not be relevant. An ITR must be filed by everyone whose income exceeds the tax exemption threshold. As a result, it is essential that married couples file their taxes independently.
How much tax is free for married couples choosing to file a joint ITR?
Married couples are not permitted to file their ITR jointly in India according to the current tax laws of the country. Each spouse's taxable income is determined independently, and they must each file their own income tax return. As a result, married couples filing jointly in are not eligible for the tax-free alternatives.
Can a wife in India get the ITR of her husband?
A wife in India cannot obtain her husband's ITR without the required consent under the current Income Tax Act. Each individual taxpayer is treated as a distinct entity under the Income Tax Act, and their income tax returns are private records.
What happens if I am married and file a separate ITR?
Married couples are not permitted to file their income tax returns jointly in India. Every spouse must submit a separate tax return, and they will be evaluated based on their individual incomes.
What does 'Joint Filing of Income Tax' mean in the Indian context as proposed by ICAI?
Joint filing refers to a tax provision where a legally married couple can file a single consolidated Income Tax Return (ITR), reporting their combined income, deductions, and tax liability. This is different from the current Indian system where each individual files separately. ICAI proposes this to simplify compliance and potentially reduce the overall tax burden on households.
How could joint filing impact the taxable income calculation for married couples?
If joint filing is introduced, the combined income of both spouses might be taxed under a single progressive tax slab. This could benefit households where one spouse earns significantly less or not at all, possibly lowering the average tax rate for the couple as a unit.
Would both spouses need to have income to file jointly under the ICAI proposal?
Not necessarily. Even if only one spouse earns income, joint filing may still be an option. The non-earning spouse’s inclusion could still impact deductions, exemptions, or standard reliefs, depending on how the joint return is structured.
How will deductions like HRA, Section 80C, and 80D be treated under a joint return?
It is likely that deductions will be itemized separately for each spouse within the same return. However, certain deductions might have a combined upper cap to avoid double claiming. For instance, both spouses may claim separate ELSS investments under 80C, but the total deduction may still be limited to ₹1.5 lakh.
How will TDS (Tax Deducted at Source) reconciliation work for joint filers?
TDS credits from Form 26AS and AIS for both PANs may need to be merged into a single return. The system would need to allow dual PAN inputs and appropriately match tax deducted with the respective incomes of each spouse to avoid mismatch or denial of credit.
Can both spouses opt for different tax regimes (old vs new) in a joint return?
Unlikely. If joint filing is permitted, both spouses will likely be required to select a single regime—either old or new—for the joint return. This makes regime planning more critical as it must consider deductions, exemptions, and total tax impact for both incomes.
Will joint filing be optional or mandatory if introduced?
As per the ICAI’s recommendation, joint filing would likely be optional. Couples can choose to file jointly if it provides tax advantages or continue filing separately if that suits their situation better.
How will income from house property be handled under joint filing?
If the property is co-owned, both spouses can report their share of rental income or deductions (such as home loan interest under Section 24(b)) within the joint return. Ownership proportions would still need to be disclosed to allocate income and deductions correctly.
Will joint filing apply to same-sex couples or only heterosexual married couples?
As of now, same-sex marriages are not legally recognized in India, and the ICAI proposal refers to legally married couples. Therefore, until legislative changes occur, joint filing may only apply to heterosexual couples married under Indian law.
How will capital gains be treated if both spouses have investments?
Capital gains will need to be segregated by individual within the joint return. Each spouse’s gains will be computed as per applicable rules, including holding period classification, indexation, and exemptions under Sections 54 or 54F, while filing under one unified ITR.
Will clubbing of income rules still apply under joint filing?
Clubbing provisions may be partially revised if joint filing is introduced. However, transfers of income-generating assets without adequate consideration may still invoke clubbing provisions to prevent tax avoidance, even under joint declarations.
What impact will joint filing have on surcharge and cess computation?
Surcharge and cess would be calculated on the combined income. If the total income crosses prescribed thresholds, such as ₹50 lakh or ₹1 crore, surcharge will be applicable—possibly leading to a higher tax outgo despite slab-based benefits.
Will there be special forms or modifications in existing ITRs for joint filing?
A new ITR form (like ITR-J) may be introduced or existing forms could be updated to include spouse details, second PAN, and bifurcation of income heads. These changes will be necessary to accommodate joint computations, deductions, and disclosures.
What digital infrastructure upgrades will be required to enable joint filing on the income tax portal?
The portal will need to support entry of dual PANs, joint Aadhaar-based verification, shared access to AIS/26AS, and secure OTP authentication for both users. Refunds and notices would also need dual mapping and accountability settings in the backend system.
How will joint filing affect notices, refunds, and scrutiny proceedings?
Any scrutiny notice, defective return alert, or refund communication may be jointly addressed to both filers. Refunds could be credited to a shared account or divided proportionally. Liability for errors or omissions may be shared unless otherwise specified.
Comments