The central government is considering introducing the option of joint tax filing for married couples in the 2026 budget. If this proposal is passed like America and Germany, then husband and wife will be able to pay tax by combining their income. Know what is special in it.
Union Finance Minister Nirmala Sitharaman will present the Union Budget 2026 on February 1. Before this, it is being said that there may be a big good news for married taxpayers in India. The Finance Ministry is considering alternative joint tax returns for married couples. If it passes, spouses will have the opportunity to file a combined tax return. This will help in saving money, especially those families where only one person earns.
The Institute of Chartered Accountants of India (ICAI) has made this recommendation based on the model of America and Germany, where married couples can file taxes jointly. Now the central government is considering adopting the same model in India also.
How is the current system?
At present every person, whether married or not, has to pay separate taxes. Husband and wife get different exemptions, slabs and deductions. In families where only one person earns, they are not able to take full advantage of the exemption of the other partner, which increases the tax burden. Therefore, it is believed that joint tax will be beneficial.
What is joint tax?
Joint tax means a married couple can combine their income and file a tax return together. It is proposed to bring it as an optional system in the budget of 2026. That is, those who wish can remain in the existing individual tax system, and those who wish can opt for joint tax. Both partners will be required to have PAN.
Why is joint tax necessary? its benefits
Under this system, the total income of the spouses will be combined and taxed under a separate slab. This can especially provide relief to those families where only one person earns. With joint filing, the husband and wife will also be able to adjust the rebate on home loan interest and medical insurance in a better way.
There may be changes in tax slabs
Under joint tax, the basic exemption limit and tax slab can be increased in the same proportion. For example, if currently an individual gets an exemption of Rs 3 lakh, then in joint filing this limit can be double or even more. This will directly benefit middle class families.
You can get relief on surcharge also
Currently, surcharge is levied on income above Rs 50 lakh. Experts are suggesting to increase this limit to Rs 75 lakh. In joint tax, the limits of surcharge can also be fixed in the same proportion, which will reduce the tax burden.
It is also proposed that if both husband and wife are earners, both should continue to get separate standard deductions. Countries like the US and Germany allow married couples to file joint tax returns, thereby treating the family as a single economic unit. India can also adopt a similar system to simplify and modernize its tax laws.