Raghav Chadha proposes joint tax filing for married couples — here’s how it could work

Aam Aadmi Party MP Raghav Chadha recently proposed a set of reforms aimed at easing financial pressures on ordinary citizens, highlighting tax, pension, and banking issues in a speech in Parliament. Chadha focused on three key reforms: optional joint filing of income tax returns for married couples, restoring full income tax exemption on disability pensions for all wounded soldiers and removal of penalty charges on bank accounts for not maintaining a minimum balance.

In a post on X, Chadha explained, "Today in Parliament, I delivered a speech titled 'I Do Not Oppose, I Rise to Propose.' In Parliament today, I spoke about three everyday anxieties of ordinary Indians and proposed practical reforms...I rose to propose solutions that make the system fairer, more humane and more just." The concept of joint tax return filing has gained spotlight as many are curious about how the system might work and how could it benefit taxpayers.

Joint income tax return for married couples

Chadha highlighted that the current tax system can penalise couples where partners have uneven earnings. The MP elaborated his proposal with an example. In the first case, both partners earn the same amount Rs 10 lakh each, making a total household income of Rs 20 lakh, and they pay no tax. In the second case, one spouse earns the full Rs 20 lakh while the other stays at home to take care of children. Even though the household income is still Rs 20 lakh, the tax comes out to Rs 1.92 lakh.

The key point is that the system only looks at individuals, not the household as a whole. "The only difference is how the salary is split between the two spouses. One roof. One kitchen. One household budget. But when tax time comes, the family disappears. The tax system sees two individuals. A husband and wife become strangers. No clubbing of income or rebates," he highlighted.

"If implemented, then Family A and Family B both will pay Zero Tax."

Before Chadha, Institute of Chartered Accountants of India (ICAI) also proposed the government to allow optional joint taxation for married couples. If adopted by the ministry of finance, this could significantly change how personal income tax is structured and affect how families manage their finances.

How joint tax return filing might work?

If couples are allowed to file a single consolidated income tax return (ITR) under the joint-filing option, here's how the system might work:

• Tax slabs for joint filers could be restructured, e.g., no tax up to Rs 6 lakh, 5% for Rs 6–14 lakh, with higher slabs for larger incomes.
• Standard deductions, exemptions, and surcharge thresholds may be adjusted, such as higher surcharge limits or separate deductions for both salaried spouses.
• The option would be flexible, allowing couples to file jointly only if it benefits them, or continue filing individually.

Here's how different families and households can benefit from the proposal:

Table credit: Lubna Kably, TNN

The MP further called to restore full income tax exemption on disability pensions for all wounded soldiers, not just those invalided out of service. Chadha also raised the issue of affordable food at airports. He called on the government to expand the Udaan Yatri Cafe initiative nationwide and move the outlets inside departure areas so that air travellers have access to low-cost meals. He welcomed the government’s existing steps to introduce such cafes while highlighting the need for greater reach.

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