What’s The New Joint Couple Taxation In India?

It is already known that the Indian administration has been taking some pretty strong measures with regard to taxation policies and they are back on the job now.

The latest developments are suggesting that the income tax department has started to enforce a new joint taxation scheme that would change the course of the Indian taxation policy.

In this context, the government and the finance Ministry are reportedly proposing a new “Couple Tax” that would enhance the scenario and benefit the married couples in the country.

The "Couple Tax" refers to a proposed joint income tax filing option for married couples in India's Budget 2026, allowing combined returns to double exemptions upto ₹8 lakh and reduce tax burdens, especially for single-income families. It's not a new tax but optional relief.

The idea originates from the Institute of Chartered Accountants of India (ICAI) in their pre-Budget submission.

Joint taxation merges a married couple's incomes into a single tax return, unlike India's current individual filing system where each spouse is taxed separately on personal earnings.

In joint taxation, a single-earning couple's income could be split or averaged, potentially pushing parts into lower tax slabs 0-30%. This reduces overall tax as opposed to individual filing where all income falls under the earner's slabs. Deductions like HRA or insurance might also double, saving 5-15% on taxes for mid-income families.