NEW DELHI — During a Budget Session debate in the Rajya Sabha, Aam Aadmi Party (AAP) MP Raghav Chadha proposed three major policy shifts aimed at making India’s financial system more “equitable and humane.” He highlighted everyday anxieties that disproportionately affect middle-class families, soldiers, and low-income earners.
The Three “Practical Reforms”:
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Optional Joint Tax Filing: Chadha urged the government to allow married couples to file income tax jointly, similar to systems in the U.S. and Germany. He argued that the current individual filing system penalizes households where one spouse earns significantly more than the other, preventing them from maximizing tax slabs.
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Tax-Free Disability Pensions: He called for a 100% tax exemption on disability pensions for all wounded soldiers. Currently, the exemption is limited to those “invalided out” of service. Chadha argued that any soldier injured in the line of duty should receive full tax benefits, regardless of whether they continue to serve or retire normally.
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Abolition of Minimum Balance Penalties: Labeling the current banking penalties as a “punishment for poverty,” Chadha demanded the removal of charges for failing to maintain a minimum account balance. He noted that banks have collected thousands of crores in penalties (plus 18% GST) from marginal account holders, which contradicts the goal of financial inclusion.
The “Everyday Anxiety” Argument
Chadha emphasized that these reforms would provide immediate relief without significant revenue loss to the state. “Bank accounts are meant to give financial security, not financial stress,” he stated, comparing the need for a penalty waiver to the importance of farm loan waivers.
