ICAI Urges Joint Taxation for Married Couples in Budget 2026

• The Institute of Chartered Accountants of India (ICAI) has advised the government to introduce optional joint taxation for married couples for Budget 2026.
• Currently, the Income Tax Act treats every individual as a separate entity for tax purposes, regardless of marital status.
• Benefits of joint taxation include increased tax compliance, reduced tax burden for families, and alignment with practices in countries like Germany, Spain, and Portugal.
• ICAI proposes new tax slabs for married couples: 0% up to 6 lakh, 5% for 6-14 lakh, 10% for 14-20 lakh, 15% for 20-24 lakh, 20% for 24-30 lakh, and 30% above 30 lakh.
• The proposal also includes increasing the basic exemption limit to 6 lakh, raising the surcharge limit to 1 crore, and providing standard deduction benefits to both spouses.

Why It Matters: ICAI recommends optional joint taxation for married couples, promising tax benefits and increased compliance.