Budget 2026: Modi Govt's 'Joint Taxation' Plan for Married Couples

• The Modi government is considering 'Joint Taxation' for married couples in Budget 2026, a move that could significantly alter India's tax system.
• Currently, individuals pay tax on their own income, leading to unused tax limits for non-earning spouses and higher tax burdens for single-income families.
• Joint taxation would allow couples to file a single 'joint return', combining incomes and treating the family as one unit for tax purposes; this option would be voluntary.
• Benefits include a potential doubling of the basic exemption limit (e.g., from Rs. 4 lakh to Rs. 8 lakh) and higher thresholds for tax slabs (e.g., 30% tax limit increasing from Rs. 24 lakh to Rs. 48 lakh).
• This system, already successful in countries like the US and Germany, is expected to reduce the tax burden on millions of middle-class couples if implemented.

Why It Matters: Budget 2026 may introduce optional 'Joint Taxation' for married couples, potentially reducing tax burdens significantly.