ICAI Urges Major Personal Tax Reforms for Budget 2026: Surcharge, Deductions Review

• ICAI submitted pre-Budget recommendations for Budget 2026 to the finance ministry, focusing on individual taxation.
• Seeks review of the default tax regime, advocating for reintroduction of health insurance and disability deductions.
• Proposes raising the personal tax surcharge threshold from ₹50 lakh to ₹75 lakh to prevent unintended tax escalation.
• Suggests optional joint taxation for married couples, citing models in countries like the United States.
• Aims to make the tax regime more equitable and align policy with household financial security needs.

Why It Matters: ICAI pushes for significant personal tax reforms in Budget 2026 to benefit individual taxpayers.