Why married couples should be allowed to file taxes jointly

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Subscribe to enjoy similar stories. The taxation framework in India primarily focuses on individuals whose income is being assessed on an individual basis. Income earned from jointly owned property is taxed proportionately among co-owners based on their share in the ownership.

There are, however, certain concepts such as clubbing of income or the concept of a Hindu Undivided Family (HUF), but these concepts have very limited applicability. The family unit constitutes the foundational element of India’s demographic and societal structure, with our cultural and social fabric intricately woven around this system. However, our tax laws are rather aloof to the concept of family.

India remains significantly behind other jurisdictions that have tailored their tax systems to reflect the economic realities inherent in family-based structures. Many nations have adopted the family as a central construct in their tax frameworks and have undertaken a comprehensive reappraisal of existing tax assessment methodologies, in response to evolving social and economic dynamics. Some of the key jurisdictions around the world have already adopted some forms of family unit taxation.

Key examples are: Also Read: Can India transition to a single income tax rate? The recognition and valuation of social institutions for tax purposes remains an under-explored area of legal study. Historically central to Hindu society, the joint family system is a unique institution. However, it only captures select elements of taxability arising out of jointly held businesses and properties.