Quick Summary
With expectations building ahead of the Union Budget 2026-27, ICAI has urged the government to introduce targeted reforms in individual taxation, particularly under the default personal income tax regime. In its pre-Budget memorandum submitted to the finance ministry, ICAI acknowledged that the new default tax regime has simplified tax slabs and reduced compliance complexity. However, it cautioned that the removal of key deductions has weakened household-level financial protection and created u
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
ICAI recommends allowing deductions for health insurance premiums and certain medical expenses under the default tax regime. They also propose extending disability-related deductions and revising deduction limits upwards to reflect inflation and rising long-term care costs.
ICAI notes that under the default tax regime, individuals may cross surcharge thresholds more quickly due to the absence of deductions, even if their disposable income hasn't significantly increased. They propose raising the threshold from Rs 50 lakh to at least Rs 75 lakh.
ICAI has proposed an optional joint taxation system for married couples. This would allow couples to file a single tax return with proportionately higher exemption limits and tax slabs, better reflecting single-income households.
The main goals are to fine-tune the default tax regime, ensuring that its simplicity does not compromise equity, social security, and household financial resilience.
Yes, ICAI acknowledges that the new default tax regime has simplified tax slabs and reduced compliance complexity.
CAclubindia
