Debate on Inheritance Tax Sparks Political Controversy in India

The debate surrounding inheritance tax has been heating up in recent weeks, with Indian Overseas Congress president Sam Pitroda’s comments sparking a response from Prime Minister Narendra Modi. The issue at hand is whether the Congress intends to take away people’s wealth even after death.

In India, there is currently no income tax, stamp duties, or capital gains tax to be paid on inherited property. This has led to a discussion about the implications of inheritance tax and the legal repercussions for those who inherit property through a will versus those who receive it as a gift.

The Estate Duty Act of 1953, which categorized estates based on value and imposed corresponding tax rates, was abolished in 1985 due to public opposition. The high rates and administrative costs associated with the estate duty led to its abolition, as it was seen as a double tax alongside wealth tax.

While beneficiaries in India do not currently have to pay inheritance tax on inherited property, other countries such as the United States, United Kingdom, Japan, South Korea, Spain, Germany, and France do have estate or inheritance taxes in place. These taxes vary in rate and application, with some countries imposing high rates on inherited assets.

Overall, the debate around inheritance tax in India continues to be a hot topic, with implications for both individuals and the broader economy. It remains to be seen how this issue will be resolved in the coming weeks and months.