Joint ITR in Budget 2026? How Married Couples May Save Thousands in Income Tax

India’s income-tax framework continues to be based entirely on individual taxation. Even after marriage, husband and wife are treated as two separate taxpayers, each required to file their own income tax returns. While this structure has remained unchanged for years, it often does not reflect how households actually function.

In many families, income may be earned by only one spouse, while expenses are shared. Despite this, the earning spouse bears the full tax burden, while the non-earning spouse’s basic exemption limit remains unused. This mismatch has brought renewed focus on joint taxation ahead of the Union Budget 2026, which will be presented on February 1, 2026. In an exclusive with HerZindagi Sajal Goel and Nupur Gupta explained about joint taxation and tax relief for married couples. This is our series ‘Budget And Her’, where we look at the budget from a woman’s perspective. This campaign is in collaboration with DigiWhistle (@digiwhistle).

How Joint Taxation Could Address Single-Income Households

In a discussion on the proposed change, Sajal Goel, Business and Markets expert, points out that household expenses are incurred jointly, even if income is earned by one person. From this perspective, tax liability should also be distributed at the family level rather than resting entirely on a single individual.

According to him, if a joint income tax return option is introduced, the unused exemption limit of a non-earning spouse could be effectively utilised. This, he notes, could significantly reduce the overall tax burden for single-income households.

Joint Tax Slabs Explained

Nupur Gupta, Company Secretary and Advocate, explains that a proposal has been submitted to the government suggesting a separate slab structure for joint filing by married couples. As per the proposal discussed:

• Combined household income up to ₹8 lakh may attract zero tax
• Income between ₹8 lakh and ₹16 lakh may be taxed at 5%

This structure differs from the current individual-based slabs and is aimed at recognising the household as a single financial unit for tax purposes.

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Joint Tax Slabs: Key Feature

A crucial point highlighted by Nupur Gupta is that joint ITR filing would be optional, not mandatory. If joint filing does not result in tax savings, couples would still be free to continue filing separate income tax returns as they do currently.

This flexibility ensures that households where both spouses are earning are not disadvantaged by forced income clubbing. Couples can simply choose the method that works best for their financial situation.

Why the Proposal Matters for Households

The idea behind joint taxation is rooted in fairness. When expenses are shared, taxing income at the household level is seen as a more balanced approach. For many families, this could translate into meaningful savings running into thousands of rupees.

With the Budget session beginning on January 28 and continuing until April 2, 2026, expectations are high that Budget 2026 could bring clarity on whether joint ITR filing will move from proposal to policy.

For now, married taxpayers are watching closely, as this reform, if introduced, could mark a significant shift in India’s personal taxation system.

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Keep reading Herzindagi for more such stories.

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