Same-Sex Couple Files Plea Seeking Equal Tax Treatment Under Income Tax Act:

A petition has been filed before the High Court of Bombay on behalf of a same-sex couple asking for equality in the matter of tax exemptions under the Income Tax Act. In this case, the couple has asked that the gifts made to each other must be allowed tax exemption in the same manner as in the case of legally married couples.

According to the existing law of taxation, any gift received from a spouse is exempt from tax. But according to the Income Tax department, exemptions are provided only in cases where marriage is legally recognised in India. As same sex marriages are not legally recognised in India, this tax exemption cannot be allowed.

It has been said by the couple that the refusal of the exemption is an act of discrimination and is unjust. According to them, there should not be any difference when it comes to giving equal benefits according to the tax laws, irrespective of the gender of the couple.

The Bombay High Court has listened to both sides of the argument and will make a decision whether the present tax laws can be interpreted in a manner to include same-sex couples, or whether it requires a change in the law.