Finshots Daily Should married couples be taxed together?
10 snips
Jan 12, 2026 Join a lively discussion on the potential benefits of allowing married couples to file income tax returns jointly in India. The conversation reveals how current tax laws can create loopholes, allowing income splitting to reduce taxes. The Institute of Chartered Accountants of India proposes this shift for better compliance. Explore the complexities of enforcement, with Section 64 ensuring no income evasion. Global examples are noted as potential models to guide India's tax reform.
AI Snips
Chapters
Transcript
Episode notes
Simplicity Improved Compliance
- The new 2021 tax regime removed deductions and lowered rates to reduce disputes and simplify compliance.
- Many taxpayers preferred simplicity over juggling deductions and scrutiny under the old regime.
Rent Splitting Example
- The podcast gives a concrete rent-splitting example where tenants pay part of rent into a spouse's account to avoid tax.
- This shifts 1.5 lakh rupees to the non-earning spouse so both stay below the 4 lakh exemption and pay zero tax.
ICAI's Joint Filing Proposal
- ICAI proposes joint returns so married couples get combined exemptions and tax slabs, removing income-splitting incentives.
- Joint taxation would treat the household as a unit and make sharing income transparent.