Pre-Budget Consultation: ICAI Suggests Optional Joint Taxation for Married Couples
ICAI has proposed optional joint taxation for married couples to promote tax fairness and simplify compliance.
Pre-Budget Consultation - ICAI - Optional Joint Taxation - Married Couples - taxscan
Pre-Budget Consultation - ICAI - Optional Joint Taxation - Married Couples - taxscan
The Institute of Chartered Accountants ofIndia ( ICAI ) has suggested that the government should allow optional joint taxation for married couples while filing income tax returns.
The proposal was made as part of ICAI’s Pre-Budget Suggestions for the Union Budget 2026-27, which focus on simplifying tax laws, reducing litigation, and supporting sustainable growth.
Making Tax Fairer for Families
At present, each spouse in India files taxes separately. According to ICAI, this system sometimes leads to a higher combined tax burden on couples, especially when one partner earns much more than the other. Allowing joint taxation would mean that a couple could choose to file a single, combined tax return, and their total income would be taxed together at a fair rate.
ICAI explained that this model, already in practice in countries like the United States and several European nations, could bring greater tax equity among households and simplify tax compliance for working families.
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Part of Broader Pre-Budget Reforms
The suggestion forms part of ICAI’s larger set of pre-budget recommendations submitted to the Ministry of Finance. These include:
- Extending tax-neutral status to business reorganisations of LLPs,
- Rationalising TDS on partners’ remuneration,
- Introducing incentives for green and sustainable projects, and
- Simplifying return processing and compliance requirements.
ICAI also recommended decriminalisation of minor tax offences, removal of dual penalties, and development of a year-wise e-ledger system for easier credit of taxes paid.
Supporting a Green and Fair Economy
Speaking on the occasion, CA. Charanjot Singh Nanda, President of ICAI, said that the Institute continues to act as the government’s trusted knowledge partner in building a transparent and growth-oriented tax system.
“Through our pre-budget suggestions, we aim to support a tax ecosystem that promotes ease of doing business, drives sustainable growth, and strengthens India’s journey towards a resilient and green economy,” Nanda said.
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