Does marriage mean lower taxes? Modi government may offer major tax relief to married couples in upcoming Budget

Could getting married ease your tax burden? It can. as the Modi government is planning a major relief for married couples ahead of the Union Budget 2026. According to reports, the Finance Ministry is considering a proposal to introduce joint income tax filing ahead of the upcoming budget. The proposed reform would enable couples to submit a combined tax return aimed at providing relief to families relied on a single source of income.

At present, such families which have are dependent on a single income are not allowed to utilise the tax exemption and slab benefit of the non-earning spouse fully, leading to higher tax liabilities.

Under the proposed system, married couples may be allowed to combine their incomes and file a single income tax return. The joint taxation option would not be mandatory. Couples could choose between the existing individual filing system and the new joint filing method. However, both spouses would need to have Permanent Account Numbers (PAN) to opt for joint filing.

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Under this model, the total household income would be taxed under a separate slab structure. This could reduce the tax burden for families where one spouse earns significantly more than the other. Joint filing may also help couples better utilise deductions on housing loans, medical insurance premiums and other tax-saving investments.

What may change in tax slabs and surcharge?

The government is also considering changes to exemption limits and tax slabs for joint filers. For example, if the current basic exemption limit for an individual is Rs 3 lakh, the threshold for joint taxation could be doubled or adjusted accordingly. Such a move could bring substantial relief to middle-income households.

There is also a discussion on revising surcharge limits. At present, a surcharge applies to incomes above Rs 50 lakh. Experts have suggested raising this limit to Rs 75 lakh, with suitable adjustments for joint filers. If both spouses earn, each would continue to receive their individual standard deduction under the proposed framework.

Several developed countries already treat married couples as a single financial unit for tax purposes. Introducing a similar system in India could simplify tax compliance and modernise the country’s taxation structure.

The Budget Session of Parliament is expected to begin on January 28 and continue until April 2. Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27 on Sunday, February 1, when more clarity on this proposal is likely to emerge.