Budget 2026: A major relief is expected for married taxpayers before Budget 2026. There is talk that Finance Minister Nirmala Sitharaman may introduce the option of “joint taxation.” This will allow husband and wife to file their tax returns together.
Budget 2026: Ahead of the Union Budget 2026, a new discussion regarding taxation has intensified. It is believed that the government may introduce the option of “joint taxation” for married individuals. If this system is implemented, husband and wife will be able to file their income tax returns together. This could provide relief, especially to families where only one person is responsible for earning. If this proposal is implemented, families with single income earners could save up to lakhs of rupees in tax.
This is why this issue is being discussed intensely before the budget. The Institute of Chartered Accountants of India (ICAI) has issued a specific recommendation to the Finance Ministry regarding the Union Budget. It has advised giving husband and wife the option to file joint returns. Currently, husband and wife have to file separate income tax returns. Under the new income tax regime, both husband and wife are entitled to a basic tax exemption of Rs 4 lakh. Under the new regime, each of the two is entitled to a basic exemption of Rs 2.5 lakh.
The Tax Burden on Married Individuals Increases
Many households have only one spouse employed or working. The other spouse takes care of the home, children, and the elderly. This work, while crucial, is often overlooked in the tax system. Consequently, such families face a higher tax burden. Currently, in India, every individual, regardless of marriage, is required to pay separate taxes on their income. Both spouses are entitled to different basic exemptions, slabs, and deductions. Consequently, despite being married, the other spouse is unable to fully benefit from tax exemptions. This significantly impacts married individuals’ tax burden.
Learn What Joint Tax Filing Is
Joint taxation means that married couples file their tax returns together by combining their income. It is believed that the government may introduce this as an option, allowing people to remain in the old system if they wish. Both couples will need to have PAN cards.
What Benefits Will Married Couples Get?
If combined income is taxed, the exemption limit could increase. Home loans, health insurance, and other tax exemptions could be better utilized. Middle-class families could see significant tax savings each year. Separate tax slabs could be created for joint taxation. Additionally, the surcharge limit for higher income could be increased. This would reduce the tax burden on families.
These countries have a joint tax system.
Many countries, such as the United States, Germany, Spain, and Portugal, allow married couples to file joint tax returns. There, the family is considered an economic unit. India could also simplify and modernize its tax laws by adopting such a system. The Institute of Chartered Accountants of India (ICAI) has made a suggestion to Finance Minister Nirmala Sitharaman that could introduce joint taxation in India, similar to that in developed countries.
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