How does the recognition of same-sex couples as 'spouses' in the IT Act affect the concept of equality in taxation?

The recognition of same-sex couples as 'spouses' under the Income Tax (IT) Act is a significant issue related to equality in taxation. Currently, many tax benefits and exemptions in India are available only to heterosexual married couples, which excludes same-sex couples from similar advantages. This has implications for both legal rights and social equality.

• Tax Benefits for Spouses: The IT Act provides several tax advantages to ‘spouses’, such as exemptions on gifts, joint filing benefits, and deductions for health insurance premiums. Same-sex couples, if not recognized as spouses, are deprived of these benefits.
• Principle of Equality: The Indian Constitution guarantees equality before law (Article 14). Denying same-sex couples the same tax benefits as heterosexual couples creates discrimination and violates this fundamental right.
• Social Inclusion: Legal recognition in tax laws goes beyond financial benefits. It signals acceptance and inclusion of same-sex relationships in society, contributing to broader social equality.
• Removal of Double Taxation and Penalties: Without recognition, same-sex partners may face double taxation on shared assets or income, or may be subject to penalties that heterosexual couples can avoid.
• Inheritance and Wealth Transfer: Spouses enjoy exemptions in inheritance and transfer of wealth. Recognizing same-sex couples as spouses allows them to inherit property or assets without additional tax burdens.
• International Best Practices: Many countries that recognize same-sex marriages also extend equal tax benefits, setting a precedent for India to follow in upholding equality.