New Delhi, Jan 19: The upcoming Union Budget for 2026-27, to be presented in Parliament on February 1 by Finance Minister Nirmala Sitharaman, could bring a major relief for married couples.

The Finance Ministry is actively considering a proposal to allow husbands and wives to file their income tax jointly, a system known as joint taxation.

Currently, India’s tax system requires individuals to file separately, regardless of marital status. Each spouse receives separate exemptions and deductions, but families with only one earning member cannot benefit from the unused tax advantages of the non-working spouse. This often results in a higher overall tax burden for single-income households.

The proposed joint taxation system would allow couples to combine their incomes and file a single return. Experts believe this could make the tax structure fairer, especially for families where only one partner earns. It would also reduce the tax liability for many households, providing significant financial relief.

Another key aspect under consideration is relief on surcharge. At present, surcharge applies to incomes above ₹50 lakh. Under the new system, the threshold could be raised to ₹75 lakh or more, offering substantial relief to families in higher tax brackets.

The Institute of Chartered Accountants of India (ICAI) has suggested that the system be optional, allowing couples to choose between joint filing or continuing with the current individual system.

Countries like the USA and Germany already follow similar models, treating the family as a single unit for taxation. If adopted, this reform could reshape how Indian families plan their finances and taxes each year.

The final decision will be revealed when the Finance Minister presents the Union Budget on February 1. The Budget Session of Parliament is scheduled to begin on January 28 and continue until April 2.

This proposal, if implemented, could mark one of the most significant changes in India’s tax system in recent years, directly impacting millions of households across the country.

Compiled by: Aditi Majhi