February 4, 2018

Inheritance tax may be reintroduced in India by Centre soon; How it can impact you

In a bid to shore up its coffers, the government is planning to reintroduce inheritance tax in India, which may be introduced in the coming Budget, according to media reports. It may be noted that inheritance tax, which was known in India as ‘estate duty’ and is imposed on the property passed to an heir, was abolished in India by the Rajiv Gandhi government in 1985 as it failed to reduce wealth inequality.

However, some economists are now in favour of reintroducing it to boost tax revenues. Earlier Finance Minister Arun Jaitley was also not in favour of levying a tax on inherited wealth as he felt that taxpayes in India don’t inherit as much wealth as those in developed countries, but now he is having second thoughts on it and has reportedly also sought feedback and recommendations on it.

Whatever be the case, tax experts say that we live in a country where the polarization of wealth and power is a common phenomenon, and very few individuals control a large chunk of the total wealth of the county.

Read more at http://www.financialexpress.com/money/inheritance-tax-may-be-reintroduced-by-centre-soon-how-it-can-impact-you/887116/

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