ICAI for joint taxation scheme for couples

Proposes surcharge threshold at ₹1.5 crore

- DIPAK MONDAL @NewDethi

THE Institute of Chartered Accountants of India (ICAI) has proposed introduction of an optional joint taxation scheme for married couples, as part of its pre-Budget consultation with the finance ministry, arguing that the move would better reflect household realities and curb income-splitting practices.

In its representation, ICAI said under the existing Income-tax framework, individuals are taxed separately, with each taxpayer entitled to a basic exemption limit of ₹4 lakh under the default tax regime and ₹2.5 lakh under the optional regime. While this structure works well for dual-income households, a large section of Indian families continue to rely on a single earning member.