'Inheritance tax will bring more people under the tax net': Zerodha's Nikhil Kamath's old video goes viral. Watch here

His comments coincide with a wider treatment connected wealthiness distribution, prompted by caller remarks from Sam Pitroda, Chairman of the Indian Overseas Congress, connected the inheritance taxation successful the US.

"South Korea, America, and the UK person inheritance taxes, known arsenic property taxes. For India, wherever lone astir 3% of the colonisation pays income tax, implementing an inheritance taxation could bring much radical nether the taxation net," Kamath asserted successful the video.

He further suggested that specified a measurement targeting the 'extremely affluent' could supply the authorities with the indispensable resources to undertake required reforms. Kamath added that inheritance taxation could beryllium a viable means to execute this objective.

Some reason against implementing an inheritance taxation successful India, stating that it whitethorn not beryllium justified. “An inheritance taxation disincentivises radical to enactment hard and could pb the state backward," said Mumbai-based concern and taxation adept Balwant Jain.

In his view, implementing an inheritance taxation does not service the nationalist interest.

Zerodha's Nikhil Kamath supports ‘inheritance taxation successful India’ Watch the afloat video here

Inheritance taxation successful India

The conception of an inheritance taxation is not caller to India. This taxation was prevalent successful India earlier it was abolished successful 1985.

Introduced successful 1953 nether the Estate Duty Act, the inheritance taxation aimed to trim economical disparity. The authorities astatine the clip identified important wealthiness inequalities and conceived the thought of specified a tax. 

Neeraj Agarwala, spouse astatine Nangia Andersen India, stated that according to conception 47 of the Income Tax Act, the transfer of superior assets done inheritance is not considered a taxable transfer. Therefore, receiving ₹20 lakh and 2 location properties done inheritance does not incur immoderate taxation liability astatine present. Any taxation work would originate lone upon the eventual merchantability of the location spot successful the future. He emphasised that determination is presently nary proviso successful the income taxation instrumentality for declaring inherited property, and thus, nary further disclosure is required for these inherited assets.

Sam Pitroda sparks statement connected 'inheritance tax' successful India

Sam Pitroda pointed to the existing inheritance taxation successful America, wherever 45% of wealthiness tin beryllium transferred to children upon death, portion 55% goes to the government, emphasising the fairness of specified a system. Pitroda highlighted the lack of a akin proviso successful India, wherever heirs inherit the afloat wealth, leaving thing for the public. He stressed the request for statement and treatment connected these issues, asserting that wealthiness redistribution policies should prioritise the interests of the people, not conscionable the super-rich.

Unlock a satellite of Benefits! From insightful newsletters to real-time banal tracking, breaking quality and a personalized newsfeed – it's each here, conscionable a click away! Login Now!

Published: 25 Apr 2024, 10:58 AM IST