Modi government likely to give major tax relief to married couples in the Union Budget, both husband and wife will be able to…

The Union Budget 2026–27 will be presented in Parliament on February 1 by Union Finance Minister Nirmala Sitharaman. The Budget Session will begin on January 28 and continue until April 2.

Budget 2026: The Modi government is planning a major relief for married taxpayers ahead of the Union Budget 2026. According to the reports, the Ministry of Finance is preparing to introduce an optional joint taxation system. This system will allow both husbands and wives to file income tax returns jointly.

Experts are of the opinion that this will benefit families with a single earning member the most. Currently, such families are unable to utilize the tax exemption and slab benefits of the non-earning spouse fully, resulting in a higher tax burden.

All you need to know about the system:

• At present, India’s tax system makes no distinction between married and unmarried individuals.
• The couple are taxed separately, with separate PANs, exemptions, and deductions.
• If the wife has no income, her basic exemption limit goes unused.
• Keeping this issue in mind, the Institute of Chartered Accountants of India (ICAI) has suggested that India should introduce a joint tax filing option
• In the USA and Germany, where a family is treated as a single economic unit, the same system is applied.
• Under joint taxation, the combined income of the husband and wife would be taxed together, potentially under separate tax slabs.
• Reports suggest that the basic exemption limit could be increased.
• Deductions for home loan interest, medical insurance, and other allowances could be adjusted more efficiently.
• Even if both spouses are earning, they may still be eligible for separate standard deductions.

Possible relief on surcharge

The Modi government is likely to provide relief on the surcharge. It is important to note that currently, a surcharge applies on incomes above Rs 50 lakh, but under joint taxation, this threshold could be raised to Rs 75 lakh or more. The rise in the surcharge can give a huge relief to the families in higher tax brackets as well.

The Union Budget 2026–27 will be presented in Parliament on February 1 by Union Finance Minister Nirmala Sitharaman. The Budget Session will begin on January 28 and continue until April 2. If implemented, this proposal would be considered a major and historic change in India’s tax system.