Joint Income Tax Rules: Can a husband and wife earn income together in India? Let us tell you. What is the rule of the Income Tax Department regarding this?
Joint Income Tax Rules: India’s population is above 140 crores. But even today only a few crore people of India pay income tax. The number of people filing income tax returns was 8.09 crores in the financial year 2023-24. Out of which 4.5 crore people reported zero taxable income. That is, only 3.19 crore people paid income tax.
Recently, the Institute of Chartered Accountants of India (ICAI) has suggested to the central government in its pre-budget memorandum that married couples should be allowed to jointly file income tax returns (ITR) i.e. joint taxation. If this happens, then both husband and wife can save a lot of money by filing tax returns together. Let us tell you. What are the rules regarding this.
Joint taxation not applicable in India
Under the Indian Income Tax law, when any citizen pays tax, the individual taxpayer rule applies to him. That is, every citizen makes deductions and pays tax according to his income. Income tax returns are assessed on an individual basis. If both husband and wife are tax payers, then both will file separate income tax returns. That is, it is not possible to file income tax returns together in India at present. But let us tell you that the joint taxation system is working in countries like America and England. Husband and wife benefit a lot from this.
What is the benefit of joint taxation?
In joint taxation, both husband and wife file income tax together. There is no need to give separate information. There is no need to tell about different deductions. Joint taxation is most beneficial for those married people in which the income of one person is much higher than the other.
By combining the income of both the lesser and higher incomes, the tax liability of the higher income spouse is also reduced through joint taxation. Then the average income is determined by combining the income of both. And on that basis, the income tax return is prepared. Due to which they benefit overall.
