Same-Sex Couples Challenge India's Tax Laws Over Spousal Benefits
Same-sex couples in India have approached the courts to demand the extension of tax benefits reserved for heterosexual spouses. The plaintiffs are challenging a provision of the Income Tax Act that exempts gifts between husbands and wives from taxation, arguing that the exclusion of same-sex partners is unconstitutional.
Section 56(2)(x) of the Income Tax Act of 1961 defines a “relative” to include a spouse, allowing them to give each other gifts of any value without paying taxes. According to the Washington Blade , a petition by Paiyo Ashiho and Vivek Divan is currently awaiting a hearing in the Bombay High Court. A similar lawsuit by engineers Anurag Kalia and Akhilesh Godi is being heard in the Karnataka High Court. Kalia explained that he wanted to gift his partner a gold bracelet worth over ₹115,500 (about $1,200), but for unmarried couples, gifts over ₹50,000 are subject to tax.
Prime Minister Narendra Modi’s government has rejected the demands, calling the petition an “abuse of the process of law.” In a statement, authorities emphasized that the plaintiffs are seeking benefits without formal state recognition of their union, and urged the court to dismiss the case. The hearing in the Bombay High Court was adjourned in July after Solicitor General Tushar Mehta announced his intention to represent the federal government.
The lawsuits come nearly two years after the Supreme Court of India refused to legalize same-sex marriage in 2023, leaving the matter to parliament. Nevertheless, the court recognized the inadmissibility of discrimination against LGBT people, and Chief Justice Dhananjaya Y. Chandrachud highlighted in his opinion the importance of tax, medical, and other financial benefits associated with the institution of marriage.
Tarun Khaitan, a professor of law at the London School of Economics, noted in a comment to reporters that the term “spouse” is not clearly defined in the country’s tax legislation, leaving room for judicial interpretation. In his view, constitutional guarantees of equality should be applied in light of modern realities, even if lawmakers have not explicitly established the status of same-sex couples.
