Mumbai, Aug 15 (PTI) A same sex couple has moved Bombay High Court challenging the Income Tax Act's differential treatment on taxation of gifts between spouses.

The plea filed by the couple sought to declare the term 'spouse' appearing in the explanation to the fifth proviso to Section 56(2)(x) of the Income Tax Act as unconstitutional as it excludes same sex couples from the scope and definition of the term 'spouse'.

Under Section 56(2)(x) of the Income Tax Act, any money, property, or asset received without adequate consideration, valued at over Rs 50,000, is taxed as 'income from other sources'.

However, the fifth proviso to the section exempts such gifts when received from 'relatives', including 'spouses'. The term 'spouse' is not separately defined in the Act.

A bench of Justices B P Colabawalla and Firdosh Pooniwalla on August 14 said the plea challenges the constitutional validity of a provision of law and issued notice to the Attorney General of India.

The court posted the matter for hearing on September 18.

The petition also sought a declaration extending the benefit of the fifth proviso to Section 56(2)(x) of the IT Act to the petitioners who claim to be in a long-term, stable same sex relationship.

It also sought a relief to include same sex couples under the definition of 'spouse' in the provision.

The plea said same sex couples who are in a long term and stable relationship are in the same position as heterosexual couples which would be presumed to be in a marriage. PTI SP BNM

Gift tax exclusion challenged as excluding same sex partners; petition seeks inclusion of same sex couples as spouses under the tax rule. A same sex couple has petitioned that the term spouse in the explanation to the fifth proviso to Section 56(2)(x) excludes them from a gift tax exemption and is constitutionally invalid; they seek inclusion of same sex partners within the proviso so long term stable same sex relationships receive the exemption afforded to spouses, and the High Court has issued notice and posted the matter for hearing.