Budget 2026: Husband and wife can get the option of joint tax return, tax liability will be less.

Joint tax filing benefits for couples India: The Institute of Chartered Accountants of India (ICAI) has given a revolutionary suggestion to the Finance Ministry for the upcoming Budget 2026. Under this proposal, instead of filing taxes separately, husband and wife will have to file a joint or ‘joint income tax return’. It has been advocated to give the option to file. Currently in India, tax is collected on per capita basis, which increases the burden on families where only one member earns. This change will not only provide great relief to the middle class, but India’s tax structure will also come at par with developed countries like America and Germany.

Limitations of current tax rules

Currently, under the new tax regime, both husband and wife are entitled to a basic tax exemption of Rs 4 lakh separately. If only the husband is the earner in the family, he is able to avail only his share of exemption and the exemption in the wife’s name goes waste. ICAI argues that due to this, many families are forced to show income in the names of other members on paper to save tax.

Global joint filing

In countries like the US, Germany, and Portugal, married couples are required to file the ‘Married Filing Jointly’ (MFJ) facility is already available. In these countries, filing joint returns also doubles the tax slab limit, thereby saving the family from falling into a higher tax bracket. This increases the savings of families and also reduces the chances of tax evasion because the distribution of income remains clear.

Zero tax benefit up to Rs 8 lakh

If the government accepts this suggestion in Budget 2026, then the basic exemption limit may also be doubled to Rs 8 lakh for husband and wife. This means that families with annual income up to Rs 8 lakh will not have to pay any tax, thereby increasing their disposable income. As per ICAI’s suggestion, the highest tax rate of 30 per cent will be applicable only on income above Rs 48 lakh.

Joint property and compliance

Experts believe that the introduction of joint taxation will bring great relief in cases where the property is held jointly in the name of husband and wife. Often such properties are funded by a single person, which poses a risk of investigation and notice from the Income Tax Department. Single return filing will reduce the burden of paperwork and compliance, thereby saving time for both the taxpayers and the department.

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Alternative arrangement for taxpayers

ICAI has also made it clear in its proposal that the option of joint filing should not be mandatory but optional. Taxpayers who wish to remain in the old or current individual filing system should be allowed to do so. With a valid PAN card, spouses will be able to club their income, which is expected to bring a major improvement in the financial condition of middle class families.