- The use of inheritance tax to address economic inequality is widely debated in India.
- Inheritance tax is levied on property inherited upon an individual's death.
- It differs from estate tax, which is levied on the total value of a deceased person's estate.
- It is levied by many countries. E.g. Japan (tax rate is 55%), South Korea (tax rate is 50%) etc.
- In India, currently there is no inheritance tax.
- Earlier, estate duty was imposed in 1953.
- The tax rate reached up to 85%, making it highly unpopular. Thus, it was abolished in 1985.
- Similar to Estate duty, gift tax and wealth tax were imposed in India.
- These were abolished in 1998 and 2015 respectively. However, gift tax was introduced in 2004.
- Earlier, estate duty was imposed in 1953.
- Pros and cons of Inheritance Tax
Specifications | Pros | Cons |
| Revenue Generation |
|
|
| Wealth Distribution |
|
|
