Open letter to Finance Minister: Joint Income Tax Return Filing by Families! An open letter to Finance Minister is requesting amendment to personal Income tax Act to allow family to file a joint return, thus reducing number of unneccessory returns. All the advantages are outlined in the letter. This letter is posted at www.PetitionOnLine.com/IT01POL4/ You can sign the petition on line and that way support the requested amendment.
PLEASE SIGN THE PETITION.
letter to FM:
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To: Shri Pranab Mukherjee, Finance Minister, India
Subject: Amendment to Personal Income Tax Act to allow filing of Single Family (Joint) Return
Dear Mr. Pranab Mukherjee,
At present, in a family each earning member and HUF have to file a separate return. For this each individual has to maintain a separate bank account and also has to maintain separate books of account.
If a single family return is permissible, it will greatly reduce work for following:
a) A family electing to file a joint return will maintain single joint bank account, maintain single books of account and file a single I.T. return instead of one for each earning member of the family.
b) The work of Income Tax office will be greatly reduce as fewer returns would have to be scrutinized, fewer demand notes / refunds would have to be generated and fewer assessment orders to be sent. There will be huge saving on stationary cost too, which will help reduction in carbon foot print.
c) The banks would have to serve fewer accounts, so that work and stationary would be saved.
In view of above, sir, I request you, on behalf of all the attached signatories, to amend the I.T. Act suitably and also consider a small incentive for filing a Family return in view of saving listed above.
I am sure you are aware that in many countries filing of a Family (joint) return is allowed.
Citizen of India are looking forward to a novel, imaginative, proactive new budget from a learned and experience finance minister like you, which will simplify and encourage citizen of India to file their Tax Returns and make their contribution in nation building.
Various Scenarios are outlined below:
One may continue using current method of filing a tax return and have separate bank accounts and separate books of accounts but if they choose .
All individuals 18 years and above in a family, can combine their income on one return.
Operate their finances through one bank account.
Maintain account of all the family transactions in one book.
How family tax structure may look like?
In case of husband and wife filing a joint tax return:
Basic exemption is Rs 150000 for a male and Rs 180000 for a woman. The basic exemption for filing joint return for husband and wife would be 330000.00 or more
Exemption under chapter VI A section 80 C would be two times the allowed amount for individual so it would be Rs 200,000.00 or more
Tax Table will also be updated accordingly.
Other exemptions would also be updated accordingly.
The benefits for family can be summarized as follow:
A family where husband and wife both are working:
They could have single bank account if they prefer.
They can file a joint tax return and get single refund check
Amount of tax they pay could be lower but never higher than if they file separate returns.
When they file a joint return, government will have less total number of text return to handle with same amount of income being reported otherwise. So less number of tax return will reflect same amount of income when compared with separate tax returns filed by each individual.
A family where either husband or wife is working:
They can file a joint tax return and reduce their tax burden greatly.
They could have single bank account if they prefer.
Nonworking spouse (home maker) gets tax benefits.
Retired Seniors filing a joint return:
They could have single bank account if they prefer.
They can file a joint tax return and get single refund check
Amount of tax they pay could be lower but never higher then if they file a separate return.
When they file a joint return government will have less total number of text return to handle with same amount of income being reported otherwise. So less number of tax return will reflect same amount of income when compared with separate return filed by each individual.
Thank you for your services to India and its fellow citizens.
Sincerely,
Re: Open letter to Finance Minister It is a very good idea.
But the concept of family I guess does not work in any administration. Besides there is no guarantee that family (Husband-Wife, Father-Son or brothers) may remain together forever. If family separates, what would happen to past history of One Family account. It may make matter complicate.
Any thoughts in such case?
Re: Open letter to Finance Minister: Joint Income Tax Return Filing by Families! Thank you for appreciating the idea.
Agree that family concept is new for India. This is optional method of filling a return, so people can continue filling individual return if they want to do so. In the countries where this option is available, you are not required to use same method of filling year after year. That means one year you file a joint return, next year if you are separated, you have divided your assets and book of accounts and can file an individual return. This concept works better for Husband and wife. There is no real precedence that it works with parent, children or sibling.
Normally, there would be a applicable law on how to split the assets, if it is held jointly unless account holders have predefine the holding stacks for the account.
Finally, If you think this is a good idea and may work for some, I request you to sign the petition.
Last edited by sqlgada9; June 28th, 2009 at 02:52 PM.
Re: Open letter to Finance Minister: Joint Income Tax Return Filing by Families! I think i've heard of this idea in the UK. The incentive was ppl that stayed married paid less tax than those that were not and just co-habiting. Only married ppl in the eyes of the law could file a joint return.
That it was better for children if their parents were married.
Little bit of 'social' voodoo here to give ppl an incentive to get married
not sure but i think religous institutions might have had some background role to play here. Would be interesting to know more about the history of joint returns and how long they have been in existance in various countries. Might give some more ideas as to their motivation.
Re: Open letter to Finance Minister: Joint family Return I think I have heard same thing in US for their joint return filling. I have no knowledge about the history behind it. Hope someone can through more light on it. In India the % of ppl cohabiting or divorced are so small that this issue is insignificant. Issue is simplification of filling a return and maintaining bank accounts for a family, which can merge their accounts.
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