Bengaluru: Karnataka high court has sought response from the Union govt on a petition challenging a section of Income Tax Act that denies gift tax benefits to same-sex couples, and claiming the law is discriminatory and violates right to equality.Justice B Shyam Prasad gave the direction while hearing a pending writ petition filed last year by Anurag and Akhilesh, IIT alumni and software engineers in the city. Central to the case is a 15gm gold bracelet Akhilesh gifted to Anurag and its value is declared in excess of Rs 1 lakh in tax returns filed last year.As per Section 56(2)(x),of the Income Act, any money or property worth more than Rs 50,000 received without consideration is taxable as ‘income from other sources’. However, gifts received from a ‘relative’ have been given exemption. The definition of the term ‘relative’ includes ‘spouse of an individual’.The petitioners are stated to be living together in Bengaluru for the past seven years .According to the petitioners, denial of tax benefit — otherwise available to a heterosexual couple — violated Articles 14 and 15. The next hearing is set for July 15.The petitioners argued that same-sex couples should be considered on par with married heterosexual couples. They have stated that exclusion of same-sex couples is discriminatory and the tax benefit must be extended to same-sex couples in a long-term relationship.The petitioners have challenged the constitutional validity of the provision contained in Income Tax Act, 1961, that exempts gifts between ‘spouses’ from tax and effectively excludes same-sex couples from its ambit.In support of their plea, the petitioners have relied on Supreme Court decisions, including its ruling that recognized long-term cohabitation creates a strong legal presumption of valid marriage as enunciated in the Shiramabai vs OIC Records case judgement.
