Bhubaneswar: Married couples in India may soon have the option to file a single, joint income tax return instead of two separate filings, as the government considers a significant reform ahead of Budget 2026. The proposal, still under deliberation, would introduce optional joint taxation for spouses—an approach followed in countries such as the United States and Germany.
Under the proposed system, husband and wife could choose to combine their incomes and file one consolidated tax return, while retaining the freedom to continue filing separately if that remains more beneficial. Officials indicate that the move is aimed at simplifying tax compliance and offering greater flexibility to households.
Tax experts note that joint filing could provide substantial relief to single-earner or uneven-income families by allowing better utilisation of basic exemption limits and deductions. It may also enable more efficient household-level tax planning and reduce compliance complexity.
Importantly, the reform is expected to be optional, ensuring that couples are not disadvantaged in cases where individual filing results in a lower tax liability.
If implemented, the change would mark a notable shift in India’s income tax framework—from a strictly individual-centric system to one that recognises the family as a tax unit. While no final decision has been announced, the proposal is being closely watched as a potentially transformative element of Budget 2026.
-OdishaAge
