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Karnataka HC to rule on tax exemption for gifts between same‑sex partners
✍️ Mangalore Today
🗓 24 Sep 2026, 02:17 PM
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The Karnataka High Court is hearing a petition by a same‑sex couple seeking clarification on whether gifts exchanged between partners qualify for tax exemption.
The Karnataka High Court has taken up a petition filed by a same‑sex couple requesting a definitive ruling on the applicability of income‑tax exemptions for gifts transferred between partners. The couple argues that existing provisions, which allow tax‑free gifts between spouses, should extend to recognized same‑sex relationships under the law.
Under Section 56(2) of the Income Tax Act, gifts received from certain relatives are exempt from tax, while gifts from non‑relatives are taxable if they exceed a specified threshold. The petition seeks to interpret the term "relative" to include partners in a same‑sex union, thereby granting them the same fiscal benefits as opposite‑sex married couples.
Legal experts note that the case could set a precedent for future tax and family‑law matters across India, as courts have yet to address the tax status of same‑sex partnerships. The High Court has scheduled a hearing for next week and will deliver its judgment after considering arguments from the petitioners and the tax department.
If the court rules in favour of the couple, it would mark a significant step toward fiscal equality for LGBTQ+ individuals, potentially prompting revisions to tax guidelines and influencing similar cases in other states.
Under Section 56(2) of the Income Tax Act, gifts received from certain relatives are exempt from tax, while gifts from non‑relatives are taxable if they exceed a specified threshold. The petition seeks to interpret the term "relative" to include partners in a same‑sex union, thereby granting them the same fiscal benefits as opposite‑sex married couples.
Legal experts note that the case could set a precedent for future tax and family‑law matters across India, as courts have yet to address the tax status of same‑sex partnerships. The High Court has scheduled a hearing for next week and will deliver its judgment after considering arguments from the petitioners and the tax department.
If the court rules in favour of the couple, it would mark a significant step toward fiscal equality for LGBTQ+ individuals, potentially prompting revisions to tax guidelines and influencing similar cases in other states.