The Union Budget 2026 could bring much-needed relief for married taxpayers, especially families dependent on a single source of income. According to policy-level discussions and expert recommendations, the government is considering introducing a joint tax return filing option for married couples. If implemented, this proposal could allow families to claim tax exemptions ranging from ₹6 lakh to ₹8 lakh, significantly reducing their annual tax burden.

The move is being viewed as a potential game-changer for middle-class households struggling with rising living costs and inflation.

Under the proposed system, married couples would be allowed to file a single, joint income tax return instead of two separate individual returns. This means the family’s income would be assessed collectively, rather than taxing one earning member at higher slab rates while the non-earning spouse remains unused for tax benefits.

Currently, individual taxpayers are assessed separately, which often puts single-income families at a disadvantage, even though their household expenses are similar to or higher than dual-income families.

The proposed joint taxation system aims to correct this imbalance by shifting toward a family-based tax assessment model.

As per discussions around the proposal:

• The tax-free income limit for families could be increased to ₹6–8 lakh, compared to the current individual threshold of around ₹4 lakh (including deductions under the new tax regime).

• This higher exemption would apply at the household level, offering direct relief to married taxpayers.

• Salaried couples may still be eligible for individual standard deductions, further reducing the overall tax liability.

If approved, this change could translate into substantial annual tax savings, particularly for households where only one spouse is earning.

The biggest beneficiaries of joint taxation would be:

• Single-income families, where one spouse manages household responsibilities

• Middle-class households facing rising education, healthcare, and housing costs

• Families supporting children or elderly dependents

Currently, a single earning member bears the entire tax burden, often pushing income into higher tax slabs. Joint taxation could help distribute this burden more fairly and reflect the true financial reality of families.

While detailed rules are yet to be finalized, the proposed framework suggests:

• Husband and wife would file one combined tax return

• Total household income would be calculated jointly

• A higher family-level tax exemption limit of ₹6–8 lakh may apply

• Separate benefits like standard deduction for salaried individuals could still be retained

• Overall tax computation would become simpler and more transparent

This system could make tax planning easier for families and reduce the complexity of managing multiple returns.

In recent years, the government has focused on simplifying the tax structure and improving fairness. However, experts believe that individual-based taxation does not fully reflect India’s family-oriented economic structure.

Many households continue to rely on a single income, especially in urban and semi-urban areas. Organizations like the Institute of Chartered Accountants of India (ICAI) have supported the idea of joint taxation, stating that it would align tax policy with social and economic realities.

Policy experts argue that family-based taxation could:

• Improve disposable income

• Boost household consumption

• Provide relief amid rising inflation

• Strengthen middle-class financial stability

If announced in Budget 2026, joint taxation would mark a major reform in India’s personal tax system. However, it would require amendments to existing income tax laws, making implementation somewhat complex.

Despite procedural challenges, the potential benefits are significant. A successful rollout could reshape tax planning for married couples and offer long-term relief to millions of households.

Budget 2026 could turn out to be a landmark moment for married taxpayers. The proposed joint tax return option and higher exemption limits signal a shift toward a more family-friendly tax system.

While there is no official confirmation yet, expectations are high. If implemented, this reform could ease financial pressure, improve tax fairness, and offer real relief to India’s middle class in the years ahead.

Disclaimer: This article is based on expectations and policy discussions ahead of Budget 2026. Final provisions will depend on official announcements by the government. Tax laws are subject to change, and readers should consult a tax professional for personalized advice.