Budget 2026: ICAI Proposes Joint Tax Returns for Married Couples

• ICAI has proposed allowing married couples to file a single joint income tax return for Budget 2026-27, aiming to reduce family tax burdens.
• Currently, each individual files separate returns, even if income, investments, and expenses are shared, leading to underutilization of tax benefits for non-earning spouses.
• Under the proposed system, combined income would be taxed with higher exemption limits and larger tax slabs, potentially doubling the basic exemption limit to around ₹8 lakh.
• This optional system would benefit families where one spouse earns significantly more or the other has no income, allowing better utilization of deductions like home loan interest.
• The proposal seeks to simplify compliance, treat the family as an economic unit, and align India's tax system with international practices seen in the US and Europe.

Why It Matters: ICAI proposes joint tax returns for married couples in Budget 2026 to reduce family tax burdens and simplify compliance.