INSUBCONTINENT EXCLUSIVE:
Can you expect reintroduction of an inheritance tax in the upcoming Budget? It is possible, say some experts
Abolished in 1985, an inheritance tax or estate tax is aimed to raise revenues from those who inherit wealth
Many analysts see this as a measure to tax the super rich in the country
At a time marked with shrinking tax collections and rising expenditure, an inheritance tax may help the government ease some of its fiscal
estate tax, which was abolished in 1985."In today's time, tax collection is digitised and streamlined
Data availability and information collation is not arduous
Circumvention of tax is certainly not easy
In terms of implementation, this tax can be better implemented and enforced now," said Amish Tandon, partner, Innovatus Law Offices."There
certainly exists scope for reintroduction of inheritance tax, but the approach must be a cautious one," Mr Tandon added.Factors such as
threshold limits, tax slabs/rates, exemptions and limits and the prospect of gift tax must be taken into account for the reintroduction of
inheritance tax, he explained.This is not the first time that the debate on inheritance tax has cropped up
In 2012, the then Finance Minister P Chidambaram had indicated his desire of re-introducing inheritance tax
However, he stopped short of bringing in the legislation and merely levied higher surcharges on income of Rs 1 crore and upwards.Inheritance
tax is in practice in many countries across the world
In the US, an estate tax as high as 40 per cent of the total value of the inheritance is in effect.Get Breaking news, live coverage, and
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