New Delhi, March 16 (IANS) Aam Aadmi Party (AAP) Rajya Sabha member Raghav Chadha on Monday raised what he described as three "everyday anxieties" faced by ordinary Indians and urged the government to introduce constructive reforms. His points included optional joint income tax filing for couples, full tax exemption on disability pensions for all wounded soldiers, and the abolition of penalties on bank accounts for not maintaining a minimum balance.Speaking during the Budget Session debate in the Upper House, Chadha said these three issues directly affect millions of citizens and require policy changes that would make the system more equitable and humane.

He described the first concern as the need to "allow optional joint filing of income tax returns so married couples with uneven incomes are not penalised".According to Chadha, the present system in India, which permits only separate tax filing by spouses, often disadvantages families where income distribution between partners is unequal.Elaborating on his point, he said that in many households, one partner earns substantially more while the other earns little or nothing. In such situations, the higher-earning spouse ends up paying a larger amount in taxes because incomes cannot be combined for tax calculation.He pointed out that several countries, including the United States and Germany, permit couples to file taxes jointly. Under such systems, spouses can combine their income and make better use of available tax slabs, often resulting in a lower overall tax burden for the household.

Chadha argued that introducing optional joint filing in India could help families manage their finances better without causing significant revenue loss to the government. According to him, such a reform would make the taxation framework fairer for households with uneven earnings.The second issue raised by the AAP leader related to disability pensions for defence personnel. He said that historically, disability pensions granted to soldiers injured during service were completely exempt from income tax.However, he said a recent policy change restricted the full tax exemption only to soldiers who are "invalided out" or medically boarded out of service due to their injuries."Those who continue to serve despite suffering disability or those who retire normally after sustaining injuries now face taxation on part or all of their disability pensions," he said.

Chadha described the situation as unjust and potentially discouraging for soldiers who have sustained injuries while serving the country."These are wounds received in service to the nation," he said, adding that such benefits should not depend on the type of discharge from the armed forces.He urged the government to restore 100 per cent income tax exemption on disability pensions linked to service-related injuries, regardless of whether the soldier continues in service or is invalided out.The third issue raised by Chadha concerned the penalties imposed by banks when account holders fail to maintain the required minimum balance in their savings or current accounts.He said banks frequently impose charges that can range from hundreds of rupees to even over a thousand rupees per month when account balances fall below the stipulated limit.

According to him, these penalties disproportionately affect low-income individuals, rural residents, and marginal account holders who struggle to maintain such balances.The Rajya Sabha member also pointed out that banks have collectively collected thousands of crores of rupees over the years through such penalties."The bank should not treat this as a crime. Bank accounts are meant to give financial security. Instead of financial security, they are giving us financial stress. And we have transformed a banking system into a system in which poverty is punished," he said during his address.Highlighting the burden faced by ordinary account holders, he said that the minimum balance requirements vary depending on the location of bank branches.

According to him, urban branches typically require customers to maintain balances between Rs 5,000 and Rs 10,000, while semi-urban branches require Rs 3,000 to Rs 4,000, and rural branches require between Rs 1,000 and Rs 3,000.He said failure to maintain these balances often results in penalties ranging from Rs 50 to Rs 600 per month."Even on that charge, we collect 18 per cent GST," he said, adding that the overall financial burden becomes even heavier for those who can least afford it.Chadha argued that such penalties contradict the goal of financial inclusion and discourage people from actively participating in the formal banking system."If we want more people to be a part of the banking system for financial inclusion, we have to protect small savings and not penalise them," he said.

In his concluding remarks, the AAP leader urged the government to abolish minimum balance penalties entirely, particularly for basic savings accounts, and said such a step would help promote financial inclusion across the country."In the end, I would just like to say that today, the banks are penalising the poor and earning more profit and revenue rather than any other service, due to which today, the poor are becoming poorer," he said.He further appealed to the government to consider waiving such charges, drawing a parallel with measures like farm loan waivers."In the end, I would just like to say to the government to waive the penalty for the minimum account balance. Just like we forgive farmers' loans, bank charges of Minimum Average Balance (MAB) should be abolished in this country, and the poor should be included financially," Chadha said.

/IANS