In the Pre-Budget Memorandum 2025, the Institute of Chartered Accountants of India (ICAI) has suggested introducing a provision allowing joint income tax return filing for married couples. This proposal seeks to address the increasing economic pressures families face.
Currently, individuals can either opt for the default tax regime under Section 115BAC or choose the normal provisions for taxation. In addition, the basic exemption limit under the default scheme is Rs 2.5 lakh for an individual taxpayer, and under the new / default regime, this can go up to Rs 3 lakh. Married couples, if both of them are earning members of the family, can benefit from the exemption limit for each member separately.
However, a significant proportion of families in India are supported by a single earning member, making the current exemption limits inadequate when considering the rising cost of living. Even for a family of four (husband, wife, and two children), the existing tax exemptions remain low, often prompting tax avoidance mechanisms through income splitting among family members.
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In this regard, the ICAI has proposed an innovative solution by introducing a joint taxation scheme for married couples.
As per this proposal, married couples could choose to file a joint income tax return, and the exemption limit would be doubled to Rs 6 lakh per family. The proposal also suggests broadening the income tax slabs to accommodate this increase in the exemption limit.
The suggested tax slabs under the joint taxation scheme would be:
Total Taxable Income (Amt in Rs) and Tax Rate (%)
Up to 6,00,000 – Nil
6,00,001 to 14,00,000 – 5%
14,00,001 to 20,00,000 – 10%
20,00,001 to 24,00,000 – 15%
24,00,001 to 30,00,000 – 20%
Above 30,00,000 – 30%
Additionally, the threshold for the surcharge would be increased, with specific rates applied to income beyond Rs 1 crore, as follows:
· Rs 1 crore to Rs. 2 crore – 10% surcharge
· Rs 2 crore to Rs 4 crore – 15% surcharge
· Above Rs 4 crore – 25% surcharge
For salaried individuals,
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