Budget 2026: Joint Taxation for Couples Could Revolutionize Household Finances

• ICAI proposes optional joint taxation for married couples, a significant shift from individual taxation.
• Currently, each spouse files separately; the proposal allows combining incomes and deductions into a single return.
• Benefits include simplified compliance, potential tax burden reduction, and alignment with global practices.
• Challenges involve overhauling existing tax systems and preventing revenue leakage.
• The optional nature ensures couples can choose the most financially beneficial filing method.

Why It Matters: Optional joint taxation for married couples could simplify taxes and reduce burdens for many Indian households.