Mumbai: Couple in Same Sex Relationship Approaches Bombay High Court Against Gift Tax Rules, Seek To Include Same-Sex Couples Under 'Spouse' Definition
The couple's plea seeks to declare the term "spouse" appearing in the explanation to the fifth proviso to Section 56(2)(x) of the Income Tax Act unconstitutional, as it excludes same-sex couples from the scope and definition of the term. The petitioners said that same sex couples who are in a long-term and stable relationship are in the same position as heterosexual couples.
Mumbai, August 17: Recently, a same-sex couple moved the Bombay High Court challenging the Income Tax Act's differential treatment on taxation of gifts between spouses. The same-sex couple filed a plea before the high court and sought to declare the term "spouse" appearing in the explanation to the fifth proviso to Section 56(2)(x) of the Income Tax Act unconstitutional as it excludes same-sex couples from the scope and definition of the term ‘spouse’.
According to a PTI report, the couple's plea seeks to declare the term "spouse" appearing in the explanation to the fifth proviso to Section 56(2)(x) of the Income Tax Act unconstitutional, as it excludes same-sex couples from the scope and definition of the term. It must be noted that under Section 56(2)(x) of the IT Act, any money, property, or asset received without adequate consideration and valued at over INR 50,000 is taxed as "income from other sources". ‘Merely Aadhaar, PAN, Voter ID Not Sufficient Proof of Citizenship’: Bombay High Court Rejects Bail Application of Man Alleged To Be Bangladeshi National.
However, the fifth proviso under the same section exempts such gifts when received from "relatives", including spouses. The term "spouse" has not been separately defined in the Income Tax Act. While hearing the plea on Thursday, August 14, the Bombay High Court bench of Justices B P Colabawalla and Firdosh Pooniwalla said the plea challenges the constitutional validity of a provision of law.
Post this, the Bombay HC notified the Attorney General of India. The same-sex couple's petition also seeks a declaration to extend the benefit of the fifth proviso to Section 56(2)(x) of the IT Act to the petitioners who claim to be in a long-term and stable same-sex relationship. The couple has also sought relief to include same-sex couples under the definition of "spouse" in the provision. Ganesh Visarjan 2025: Maharashtra Government Tells Bombay High Court It Will Allow Household Ganpati Idol Immersion Only in Artificial Ponds.
In its plea before the Bombay HC, the petitioners said that same sex couples who are in a long-term and stable relationship are in the same position as heterosexual couples, which would be presumed to be in a marriage. The court will now hear the matter on September 18.
(The above story first appeared on LatestLY on Aug 16, 2025 11:47 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).