Income Tax: Raghav Chadha Proposes Joint ITR Filing For Married Couples; Here’s What He Says

Rajya Sabha member Raghav Chadha has proposed allowing an optional joint filing of income tax returns (ITR) for married couples, arguing that the current income tax framework unfairly penalises families where only one spouse earns.

Raising the issue in Parliament, Chadha said the tax system treats a married couple as two separate individuals even though they run a single household and share expenses.

“In Parliament today I proposed optional joint filing of Income Tax Returns for married couples,” Chadha said in a post on X.

Example Of Unequal Tax Burden
Chadha illustrated the disparity using two hypothetical households with the same total annual income of Rs 20 lakh.

Family A

In the first case, both spouses earn Rs 10 lakh each, taking the household income to Rs 20 lakh. According to Chadha, the tax liability in this case becomes zero under the new tax regime after applicable rebates.

Family B

However, in the second case, one spouse earns the entire Rs 20 lakh while the other stays home to raise their child. Despite the same household income, the family ends up paying Rs 1.92 lakh in income tax.

“The only difference is how the salary is split between the two spouses,” Chadha wrote. “One roof. One kitchen. One household budget. But when tax time comes, the family disappears.”

‘Tax System Treats Husband And Wife As Strangers’
Chadha argued that the current income tax structure fails to recognise families as a single economic unit.

“The tax system sees two individuals. A husband and wife become strangers. No clubbing of income or rebates,” he said.

He suggested introducing optional joint tax filing, under which married couples could choose to file a combined tax return if it reduces their tax burden.

“If implemented, then Family A and Family B both will pay zero tax,” Chadha said.

How India’s Income Tax System Works
India’s income tax system treats each individual as a separate taxpayer, meaning spouses must file income tax returns separately even if they share household finances.

Because of this structure, the distribution of income within a family can significantly affect the total tax payable, even when the overall household income is the same.

Tax experts say the issue becomes more visible in families where only one spouse earns while the other stays home to manage household responsibilities or childcare.

Role Of The New Tax Regime
The example cited by Chadha is based on the new income tax regime, under which individuals earning up to Rs 12 lakh effectively pay zero tax after the rebate under Section 87A, following changes announced in the Union Budget.

As a result, if both spouses earn around Rs 10 lakh each, they may individually fall within the zero-tax bracket, while a single earner bringing home Rs 20 lakh would face a higher tax liability.

Global Practice In Several Countries
Several countries allow married couples to file taxes jointly, which can benefit households where one spouse earns significantly more than the other.

Countries such as the United States, Germany and France permit joint tax filing or income splitting for married couples, allowing families to distribute taxable income more evenly.