economy · 2026-03-16
Raghav Chadha Wants Married Couples to File Joint Income Tax Returns
AAP MP Raghav Chadha urged the government during the Budget Session to allow married couples to file joint income tax returns.The proposal was raised in Parliament on March 16, 2026, during ongoing budget discussions.Joint ITR filing could simplify the tax process for married households and potentially offer combined deductions.The idea mirrors tax systems in several other countries where couples can choose joint or individual filing.
What would joint tax filing actually mean for married couples in India?
Joint filing would let married couples combine their incomes on a single return, potentially unlocking higher deduction limits and lower effective tax rates. Countries like [the United States] already offer this. In India, each spouse currently files individually, meaning households with one earner may miss out on tax benefits.
What tax brackets or slabs could change under a joint filing system?
India's current slabs tax individuals separately. Under joint filing, a couple's combined income might qualify for wider slab ranges. [For example, if the 30% bracket starts at Rs 15 lakh individually, a joint threshold might be set at Rs 30 lakh], reducing the effective rate for many families.
Would joint filing benefit single-income households more than dual-income ones?
Single-income households would likely benefit more. If one spouse earns Rs 20 lakh and the other earns nothing, joint filing could split that to [Rs 10 lakh each on paper], pushing both portions into lower tax brackets and saving thousands in taxes annually.
What deductions or exemptions could married filers claim together?
Couples could potentially combine deductions under sections like [80C, which currently caps at Rs 1.5 lakh per individual]. A joint cap might double to Rs 3 lakh, giving more room for investments in insurance, ELSS funds, and PPF contributions on a single return.
Why is Raghav Chadha pushing for this change during the Budget Session?
The Budget Session is the ideal time to propose tax reforms because the Finance Bill is actively being debated. Chadha, representing AAP in the Rajya Sabha, likely sees this as a moment to push populist tax relief. [AAP's Delhi base includes many dual-income middle-class households] who could benefit directly.
What has AAP's broader tax reform agenda looked like in Parliament?
AAP has consistently pushed middle-class tax relief. Chadha previously advocated for [raising the standard deduction for salaried employees]. The party frames itself as a champion of household-level economic relief, and joint ITR filing fits that brand, especially ahead of potential state elections.
How likely is the government to actually consider this proposal?
The ruling party has not signaled interest in joint filing so far. The government's focus has been on simplifying the new tax regime. Still, [the 2025 budget raised the nil-tax threshold to Rs 12 lakh], showing some appetite for relief. Political pressure could nudge further discussion.
Would this proposal require changes to the Income Tax Act itself?
Yes, significant amendments would be needed. [The Income Tax Act, 1961] treats every individual as a separate assessing unit. Introducing joint filing would require new provisions for combined assessment, liability sharing, and dispute resolution if couples separate or divorce mid-year.
How do other countries handle joint tax returns for married couples?
Several nations give married couples the option. [The United States] lets couples choose between joint and separate filing, often resulting in lower combined taxes. [Germany uses a income-splitting model] where joint income is halved, taxed, then doubled. France and Canada have their own variations too.
Which countries saw revenue impacts after adopting joint filing?
[The U.S. Treasury has studied this extensively], finding that joint filing can reduce revenue through the so-called marriage bonus effect. However, it also simplifies compliance. Countries like Canada avoided this by using individual filing with transferable credits instead of full joint returns.
What challenges could India's tax infrastructure face with joint returns?
India's IT department would need to overhaul the [e-filing portal] to link two PAN numbers on one return. Verification, Aadhaar linkage, and refund processing for two individuals on a single form would add complexity. The system currently handles about [8 crore individual returns annually].
Could joint filing create disadvantages for some couples?
Yes. In some cases, [dual high-earner couples in the U.S.] face a marriage penalty where joint filing pushes combined income into higher brackets. India would need carefully designed slabs to avoid penalizing couples where both partners earn similar, high incomes.
Source: thehindu.com