Amidst the ongoing political discourse, a video featuring Zerodha co-founder Nikhil Kamath’s views on inheritance tax in India has emerged. In the video, Kamath expresses his support for such a tax, highlighting the need for mechanisms to redistribute wealth from one generation to another. He emphasizes that inheritance tax is a common practice in various countries and could bring more individuals under the tax net in India, where only a small percentage of the population pays income tax. Kamath believes that targeting the ‘extremely affluent’ through inheritance tax could provide the government with the necessary resources to undertake crucial reforms. However, the concept of inheritance tax in India has drawn mixed reactions. Some experts, such as Mumbai-based investment and tax expert Balwant Jain, argue against its implementation, stating that it could discourage hard work and hinder economic growth. Despite its abolition in 1985, the concept of inheritance tax is not entirely new to India. Introduced in 1953 under the Estate Duty Act, it aimed to reduce economic disparities. However, section 47 of the current Income Tax Act does not consider inheritance as a taxable transfer, meaning that inherited assets are not subject to tax liability until they are sold. Nonetheless, calls for a debate on inheritance tax have been sparked by comments from Sam Pitroda, Chairman of the Indian Overseas Congress, who highlighted the existence of inheritance tax in countries like the US and the UK. Pitroda emphasized the need for policies that prioritize the interests of the general public rather than solely benefiting the super-rich.
Nikhil Kamath Backs Inheritance Tax in India
