Gift or income? Same-sex couple's gold bracelet sparks tax law challenge in HC
A Bengaluru same-sex couple has challenged the constitutional validity of Section 56(2)(x) of the Income Tax Act, 1961, in the Karnataka High Court. They argue that the provision, which exempts gifts between 'spouses' from tax, discriminates against same-sex couples because the literal interpretation of 'spouse' excludes them. This, they contend, violates Articles 14, 15, 19(1)(a), and 21 of the Constitution by taxing an 'expression of love and affection' solely based on sex, denying them benefits available to heterosexual couples. The court is examining whether 'spouse' can be judicially enlarged.
Key Points
- A Bengaluru same-sex couple challenged Section 56(2)(x) of the Income Tax Act, 1961, regarding tax exemption on gifts.
- They argue that the provision's definition of 'spouse' discriminates against same-sex couples, violating constitutional rights.
- The couple contends that taxing gifts between same-sex partners is a violation of Articles 14, 15, 19(1)(a), and 21.
- The Karnataka High Court is deliberating whether the term 'spouse' can be expanded through judicial interpretation.
- This case highlights the ongoing legal battle for recognition and equal rights for same-sex relationships in India.
Exam Facts
- Section 56(2)(x) of the Income Tax Act, 1961, is under challenge.
- Articles 14, 15, 19(1)(a), and 21 of the Constitution are cited in the petition.
- The petitioners are Anurag Kalia and Akhilesh Godi, a same-sex couple from Bengaluru.
- A 2018 Supreme Court ruling held that 'sex' under Article 15 includes sexual orientation.
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