In India, marriage changes almost everything social status, financial responsibilities, lifestyle choices.

Except one thing.

Income tax.

Even after marriage, the tax system continues to treat spouses as two completely unrelated individuals. Two returns. Two slabs. Two separate computations. No recognition of shared household economics.

As Budget 2026 approaches, this gap is becoming harder to ignore.

The core question

If marriage is legally recognised, financially intertwined, and socially acknowledged—
why does the tax system pretend it doesn’t exist?

How the current system works

Under India’s Income Tax Act:

• Each spouse is taxed individually
• Income is assessed separately
• No concept of “family unit” taxation
• No income pooling or sharing benefits

This means:
A married couple earning ₹20 lakh together may pay more tax than a single-earner household with the same combined income.

The law assumes:
Two earners = two independent economic units
But real life doesn’t work that way.

The hidden inequity

Most married couples share:

• Housing costs
• Household expenses
• Childcare and education costs
• Long-term financial planning

Yet the tax system ignores these shared obligations.

The result?

• Dual-income couples face higher marginal tax rates
• One spouse often absorbs unpaid care work with zero tax recognition
• Families with identical total incomes face different tax burdens depending on income distribution

In effect, the system unintentionally penalises marriage especially middle-class, salaried households.

What is joint taxation?

Joint taxation allows spouses to:

• Combine incomes
• File a joint return
• Be taxed as a single economic unit

Countries like:
• USA
• UK (partial mechanisms)
• France
• Germany

already recognise marriage in their tax frameworks—either through income splitting, joint filing, or transferable allowances.

The idea is simple:
Tax households, not just individuals.

Why Budget 2026 is the right moment

India is witnessing:

• Rising urban dual-income households
• Higher childcare and housing costs
• Greater participation of women in the workforce
• Increasing financial stress on middle-class families

At the same time, tax reforms are moving towards:
• Simplification
• Equity
• Ease of compliance

Introducing an optional joint taxation mechanism aligns perfectly with this direction.

What a balanced joint taxation model could look like

This doesn’t need to be radical.

Possible approaches:

• Optional joint filing (not mandatory)
• Income splitting only up to a threshold
• Special relief for households with dependents
• Anti-abuse rules to prevent tax arbitrage

The goal is not tax avoidance.
The goal is tax fairness.

The bigger picture

Tax systems don’t just collect revenue.
They signal values.

By ignoring marriage and household economics, the system signals that:
• Family responsibilities are private burdens
• Shared financial life has no policy relevance

That disconnect is no longer sustainable.

Bottom line

Marriage in India is a legal, social, and financial partnership.

It’s time the tax system acknowledged that reality.

Budget 2026 has an opportunity to modernise income taxation by recognising families, not just individuals.

The question is no longer whether joint taxation makes sense.
It’s why it hasn’t been attempted yet.

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