No tax exemption for same-sex couples, says Income Tax Department; Section 56(2)(x) extension sought but opposed
The Income Tax Department has opposed a Bombay High Court plea seeking tax parity for same-sex couples under Section 56(2)(x) of the Income Tax Act.
AI generatedThe Income Tax Department has opposed, before the Bombay High Court, a petition seeking extension of the spouse-linked exemption under Section 56(2)(x) of the Income Tax Act, 1961 to a same-sex couple. The Department says the plea is misconceived because the benefit currently applies to gifts between spouses, and same-sex relationships are not recognised as marriage under any law in India.
The case is important because it connects direct tax treatment with the legal status of marriage and the meaning of “spouse” in Indian law. It also raises a broader constitutional question: whether courts can read fiscal exemptions expansively when the underlying relationship is not recognised by marriage statutes.
What happened
UPSC may frame this as a question on whether fiscal benefits tied to marital status can be extended to relationships not recognised under existing marriage laws, and how courts balance equality claims with statutory text. The issue also tests understanding of the separation between tax law, personal law, and constitutional rights.
Related dispatches
