ICAI Suggests Optional Joint ITR Filing for Married Couples

The Institute of Chartered Accountants of India (ICAI) has given its recommendations to the government to introduce optional joint taxation for married couples. This proposal is part of a set of suggestions aimed at contributing to the preparation of the Union Budget for 2026-27.

The institute has suggested that married couples should have the choice to file their income tax return (ITR) jointly. This would help them combine their incomes and also reduce their overall tax liabilities. Here are the other recommendations:

• Decriminalisation of certain prosecution provisions
• elimination of dual penalty for the same default.
• Introduction of a year-wise e-ledger system to credit TDS (Tax Deducted at Source)/TCS (Tax Collected at Source) and advance tax payment.
• Individuals who have more than the specified acres of agricultural land are mandated to file a return.

The ICAI has also highlighted the need for clarification on the applicable surcharge rate for calculating the Maximum Marginal Rate (MMR). These proposals are aimed at reducing compliance burdens on taxpayers, simplifying the overall tax system, and improving tax collections.