A call to allow joint filing of Income Tax for married couples has reignited the debate about India’s tax regime, with Rajya Sabha MP Raghav Chadha saying single-income households are being discriminated against in the current system. The goal, he said, is to equalise the tax burden for households where both earn an income and those with a single earner.
Chadha compared households where both spouses earn Rs 10 lakh each. For a couple whose joint income is Rs 20 lakh, the tax liability is effectively nil with the current rules, because each spouse is taxed separately. But, if one earns all Rs 20 lakh and the other is at home, the family pays about Rs 1.92 lakh in taxes.
“Only the way it is divided is different,” Chadha said, noting that even though the couple shares similar home expenses, the tax structure considers them as separate persons with no room for clubbing income or shared exemptions.
“In Parliament today I proposed optional Joint filing of Income Tax Returns for married couples,” Chadha wrote on social media platform X.
India has never permitted joint ITR filing, unlike many developed economies, such as the United States, the United Kingdom, France, and Germany, where couples can file taxes jointly. Chadha’s suggestion would bring India in line with these economies and ensure families with uneven incomes are not at a disadvantage.
Tax experts believe the idea has merit. Chartered accountant Suresh Surana told Mint that a joint taxation regime would offer an opportunity to address structural inequities and help single-income households pool incomes, to enjoy a higher exemption limit in line with actual household finances and cost-of-living realities.
The idea has also been supported by the Institute of Chartered Accountants of India (ICAI), which has suggested the addition of an optional joint filing process as a part of wider tax reforms.
If adopted, the plan could ease the tax load on numerous families and make managing finances easier. But some experts say that the advantages would differ, especially for dual high-earners whose income might put them in a higher tax category.
Will Joint ITR Filing Soon Be A Reality In India? MP Explains How Single-Income Families Are‘ Penalised’
