Budget 2026: Joint ITR Filing for Couples Could Slash Tax Liability

• ICAI proposes optional joint taxation for married couples in Budget 2026 to reduce tax liability and simplify compliance.
• Current Indian tax law taxes individuals separately, unlike USA, Germany, and Portugal which allow joint filing.
• Joint filing could benefit single-income and uneven-income households by utilizing the non-earning spouse's exemption limit.
• The proposal suggests doubling the basic exemption limit to Rs 8 lakh and expanding tax slabs for combined household income.
• Experts believe joint taxation would encourage cohesive financial planning, reduce tax evasion, and support homemaker households.

Why It Matters: Joint ITR filing for married couples, as proposed by ICAI, could significantly reduce tax burdens and simplify compliance.