Same-sex couple challenges tax rule favoring straight spouses
Payio Ashiho and Vivek Divan, a same-sex couple, have gone to the Bombay High Court challenging a tax rule that treats them differently from straight couples.
Right now, gifts between same-sex partners get taxed under Section 56(2)(x) of the Income Tax Act, while spouses are exempt.
The couple says this goes against their right to equality under the Constitution.
The court has taken up their case and asked for a response from the Attorney General.
What the couple is fighting for
Ashiho and Divan aren't asking for marriage recognition—just fair tax treatment.
Because Indian law doesn't see same-sex partners as "spouses," any gift over ₹50,000 between them gets taxed, unlike for straight married couples.
Their fight is about ending this unequal treatment for LGBTQIA+ folks.
If they win, it could mean real progress: more equal financial rights for queer couples when it comes to gifts and inheritance.