What happened

The Income Tax Department has filed an affidavit before the Bombay High Court opposing a petition by a same-sex couple seeking tax benefits under Section 56(2)(x) of the Income Tax Act. The petition seeks exemption from tax on gifts between spouses and asks that the benefit be extended to the petitioners’ relationship.

The department asked the court to dismiss the plea as misconceived. It argued that the petition is effectively asking the court to change the statutory meaning of “spouse” for same-sex relationships through tax law.

Background and earlier position

The dispute sits at the intersection of tax law and family law. Under the present legal position described in the affidavit, Indian marriage laws do not recognise same-sex relationships as marriages. On that basis, the department says the parties cannot be treated as spouses for the purpose of the income-tax exemption.

The case also reflects a continuing issue after the wider legal debate on rights of LGBTQIA+ persons: whether courts can extend statutory benefits in one field when the underlying status is not recognised in another field. The department’s stand is that the petition tries to create a conflicting definition of marriage or spouse through the Income Tax Act, rather than rely on existing laws.

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