ITR Filing 2026: Can Husband and Wife Choose Different Tax Regimes? Here's What Tax Experts Say

As the deadline for filing Income Tax Returns (ITR) for Financial Year 2025-26 approaches, many taxpayers are seeking clarity on various tax-related questions. One common query among salaried couples is whether a husband and wife can opt for different tax regimes while filing their returns.

Tax experts have clarified that spouses are free to choose separate tax regimes based on their individual financial situations and tax-saving requirements.

Can Spouses Use Different Tax Regimes?

The answer is yes.

According to tax expert Balwant Jain, Indian income tax laws treat every individual taxpayer as a separate entity. This means a husband and wife are not required to follow the same tax regime when filing their returns.

Each spouse can independently decide whether the Old Tax Regime or the New Tax Regime offers greater tax benefits.

For example:

• One spouse may choose the New Tax Regime to take advantage of the rebate available under Section 87A.

• The other spouse may prefer the Old Tax Regime to claim deductions under Section 80C, home loan benefits, medical insurance deductions, and other tax-saving provisions.

Why Is This Allowed?

The Income Tax Department assesses tax liability individually rather than at the family level.

Unlike some countries where families can file joint tax returns, India follows an individual taxation system. Therefore, each taxpayer has the right to select the tax regime that minimizes their personal tax liability.

The only exceptions arise in specific situations involving income clubbing provisions, where income generated through certain transfers of assets may be added back to the transferor's income.

For most salaried couples, however, tax returns are filed separately and independently.

Example Scenario

Suppose a wife earns income that qualifies for the rebate available under the New Tax Regime. In that case, she may choose the new system and potentially reduce or eliminate her tax liability.

At the same time, her husband may have significant investments in tax-saving instruments such as:

• Public Provident Fund (PPF)

• Employee Provident Fund (EPF)

• Equity Linked Savings Schemes (ELSS)

• Life Insurance Premiums

• Home Loan Principal Repayment

Since these deductions are available under the Old Tax Regime, he may choose to continue filing under the old system.

Both choices are fully compliant with income tax regulations.

Important Deadline for Choosing the Old Tax Regime

Tax experts emphasize that taxpayers intending to use the Old Tax Regime must file their return within the prescribed deadline.

For Financial Year 2025-26:

• Salaried taxpayers generally need to file their return by July 31, 2026.

• Taxpayers with business income may have a later deadline depending on applicable rules.

Failing to file within the allowed timeline could restrict the option to choose the Old Tax Regime in certain cases.

Home Loan Benefits Still Available

Taxpayers opting for the Old Tax Regime can continue claiming deductions on eligible home loan interest and principal repayments.

If a home loan is jointly held by husband and wife, each co-borrower may claim deductions proportionate to their ownership and repayment contribution, subject to income tax rules.

Key Takeaways

• Husband and wife can choose different tax regimes.

• Every taxpayer is treated as an independent tax entity.

• One spouse can opt for the New Tax Regime while the other selects the Old Tax Regime.

• Taxpayers should compare deductions, rebates, and overall tax liability before making a choice.

• Those planning to use the Old Tax Regime should ensure timely filing of their ITR.

Before filing your return, it is advisable to calculate tax liability under both regimes and select the option that offers the maximum tax savings based on your income, investments, and deductions.