Why my wife gets refund whereas I have to pay taxes

 

The Curious Case of Tax Refunds

It was a busy day at S&Co. Over coffee, CA Srini was chatting with his brother, CFP Vaidy of Bharadhwaj Investsmart.

“Srini,” Vaidy smiled, “clients treat refunds like a festival bonus. They cheer when money comes back, as if the government is being generous.”

Srini nodded. “And some complain bitterly when they have to pay extra. They don’t see that a refund is simply their own money being returned- because they paid more tax than necessary during the year.”

Just then, the office door opened. In walked Mr. Ramesh, a 50-year-old manager, with his wife Meera, a self-employed interior designer. Filing season had brought them in with their papers.

While Srini welcomed them, team members Pooja and Jagruti quietly got to work. They checked the documents, pulled up Form 26AS, and within minutes gave their update.

“Sir,” said Pooja, “Mrs. Meera is certainly getting a refund. But Mr. Ramesh, you’ll need to pay additional tax.”

Meera smiled. Ramesh frowned. “Why is it that she always gets refunds while I have to pay more? Feels unfair!”

Srini explained - “Ramesh ji, your salary already has TDS deducted each month. But on FD interest and other income, banks either deduct at just 10% or sometimes not at all. Since you’re in the highest tax slab, you have to make up the difference at year-end.

Turning to Meera, he explained, “As a professional, she pays advance tax in installments. Out of caution, she usually pays a little extra. When the final calculation shows she’s overpaid, the system returns the excess as refund.”

Vaidy joined in: “Think of it like a restaurant bill. Pay more, you get change back. Pay less, you settle the difference. Refunds don’t mean gain, and tax due doesn’t mean loss - it’s just adjusting accounts.”

Ramesh’s expression eased. Smiling yet grudgingly he said, “So refunds aren’t rewards, and extra tax isn’t punishment - it’s just balancing the books. Even though I understand this, I’m still not able to fully accept it.”

Meera laughed and teased, “That’s fine - you don’t have to accept it fully. Just don’t complain when I celebrate my refunds!”

The office burst into laughter. Srini added with a smile, “Look at it this way, Ramesh ji - between the two of you, it all balances out at home too!” Vaidy added, “Exactly, that’s the beauty of tax planning as a couple.”

About the Author