Raghav Chadha has suggested a major change in India’s tax system—allowing married couples to file income tax returns jointly.
Speaking in Parliament, he argued that the current system is unfair to families where only one spouse earns.
Right now, the tax system treats husband and wife as two separate individuals, even though they share one household and expenses.
He believes couples should have the option to file taxes together if it helps reduce their overall tax burden.
Same Income, Different Tax: Here’s the Problem
Chadha explained the issue using a simple example.
Family A:
Both spouses earn Rs 10 lakh each.
Their total income is Rs 20 lakh. Under the new tax regime, both may pay zero tax after rebates.
Family B:
One spouse earns the full Rs 20 lakh, while the other stays home to take care of the family.
Despite having the same total income, this family ends up paying around Rs 1.92 lakh in tax.
The key difference? Just how the income is divided between the spouses.
As Chadha pointed out, both families live under one roof and share expenses—but are taxed very differently
Why the Current System Feels Unfair
India’s tax system treats every individual as a separate taxpayer.
This means couples must file returns separately, even if they manage finances together.
Because of this, families with a single earning member often end up paying more tax.
This issue becomes more noticeable in households where one spouse takes care of children or manages the home instead of earning.
How the New Tax Regime Plays a Role
Under the new tax system, individuals earning up to Rs 12 lakh can effectively pay zero tax due to rebates under Section 87A.
So, if both spouses earn Rs 10 lakh each, they may not pay any tax.
But if one person earns the entire Rs 20 lakh, they fall into a higher tax bracket and have to pay more—even though the total family income is the same.
What Chadha Is Suggesting
Chadha has proposed introducing optional joint tax filing.
This means married couples could choose to combine their incomes and file a single tax return if it benefits them.
If such a system is implemented, both families in the example could end up paying zero tax.
What Happens in Other Countries
Many countries already allow joint tax filing for married couples.
For example:
United States
Germany
France
These countries let couples split income or file together, which helps reduce the tax burden, especially when one partner earns more than the other.
What This Means for Indian Families
If this proposal becomes a reality, it could bring significant relief to single-income households.
It would also make the tax system more balanced by recognizing families as a single financial unit instead of two separate individuals.
For now, it remains a proposal—but it has sparked an important debate on fairness in India’s tax system.
