Budget 2026: Joint Taxation for Married Couples on the Horizon

• The central government is considering optional joint taxation for married couples in Budget 2026, a move suggested by ICAI.
• Currently, India's personal income tax system is based on individual taxation, requiring separate filings for each spouse.
• Under the proposed model, couples could file a joint ITR, with their combined income assessed under new tax slabs and adjusted exemptions.
• Benefits include simplified compliance, reduced tax burden for many families (especially single-earner), and better utilization of deductions.
• Challenges involve significant changes to the existing tax framework, potential revenue leakage, and limited benefits for dual-income couples.

Why It Matters: Budget 2026 may introduce optional joint taxation for married couples, simplifying taxes and potentially reducing burdens.