ICAI Proposes Bold Tax Reforms for Simplified Business Operations

The Institute of Chartered Accountants of India (ICAI) has put forward various tax reforms to improve business ease and sustainability in its Union Budget 2026-27 proposals. Key suggestions include changes in presumptive income scopes, joint taxation for couples, and incentives for green projects, aiming for a resilient economy.

The Institute of Chartered Accountants of India (ICAI) has unveiled a series of tax reform suggestions for the Union Budget 2026-27, focusing on easing the compliance burden and enhancing business operations. These proposals aim to simplify tax laws, reduce litigation, and promote environmental sustainability.

Among the key recommendations, ICAI has advocated for excluding F&O trading and speculation from presumptive income, introducing joint taxation for married couples, and establishing an E-Ledger system for efficient tax credit adjustments. Additionally, they call for easing requirements like TAN for non-resident transactions and scrapping TCS on scrap sales.

ICAI also emphasizes tax neutrality in LLP reorganizations, fair taxation on partner remuneration, and incentives for eco-friendly initiatives. Other suggestions seek to clarify surcharge rates, decriminalize certain offenses, and streamline return processing. ICAI President Charanjot Singh Nanda noted these efforts are integral to fostering a sustainable, business-friendly ecosystem ahead of the annual Union Budget reveal on February 1.

(With inputs from agencies.)