Taxed Beyond Kinship: How India’s Middle Class is Emotionally Penalized for Fiscal Compliance

Abstract

This article investigates a critical and under-acknowledged ethical dilemma in India’s tax system: the emotional toll on salaried middle-class taxpayers who, despite contributing over ₹10 lakhs annually in taxes, often find themselves unable to financially assist their struggling family members. The study argues that this contradiction is not merely fiscal but profoundly moral. Drawing upon ethical analysis, international comparison, and policy critique, the paper reveals how India’s current tax architecture
penalizes relational responsibility and undermines emotional well-being. By ignoring the culturally embedded duties of kinship—such as supporting aging parents, unemployed siblings, or dependent relatives pursuing education—the tax regime effectively silences private acts of care. Tax definitions of dependency are narrow, and the proliferation of cesses and surcharges further erodes fiscal dignity. Through case-specific analysis and cross-national lessons, the paper proposes five reform pathways
including a Family Support Exemption Band and a Relational Tax Credit Mechanism. Ultimately, this article makes the case for a humane, kinship-sensitive tax policy that restores moral agency to taxpayers. It calls for a new paradigm: one in which fiscal compliance does not preclude familial compassion, and in which taxation serves both the state and society.