Budget 2026: ICAI Proposes Family-Friendly Joint Taxation System For Married Couples? Mixed Reactions And Renewed Scrutiny Ahead!

Budget 2026: The Institute of Chartered Accountants of India (ICAI) has proposed the concept of joint taxation for married couples in India.

In countries like Germany and the United States, joint tax filing for married couples has been a successful and established practice.

Ahead of Union Budget 2026, the approach of joint taxation has been drawing mixed reactions and renewed scrutiny from financial and tax experts. Many experts are of the view that India’s present-day tax system does not fully reflect today’s household economics as it does not recognize a husband and a wife as a single financial unit.

Budget 2026-What’s The Proposed Framework?

The ICAI proposed that a household’s combined income should be assessed under a single, distinct tax slab system. By doing this, family tax liabilities could be brought down, especially for families where one partner earns significantly higher than the other. Moreover, joint tax filing can help couples make efficient and constructive usage of deductions on health insurance premiums, home loans and other forms of eligible tax-saving investments.

The ICAI proposed that married couples with valid permanent account numbers (PANs) should be allowed to file a single (joint) return and have the option of being taxed together. It was also recommended that the basic exemption limit under this unique form of taxation should be doubled.

Would It Happen?

If accepted and announced by Nirmala Sitharaman, the finance minister of India, in the Union Budget 2026, this form of taxation could be a game-changer, drawing massive savings, investments and economic development.

Presently, the idea may not immediately translate to execution as incorporating such a taxation practice can take years of thoughtful planning and execution. However, many believe that it may happen this year or in the near future.

The budget session for Indian Parliament starts on January 28 and would continue till April 2. The Union Budget 2026 would be presented on February 1.