• Source:JND
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Inheritance Tax:  Indian Overseas Congress President Sam Pitroda, while advocating for inheritance tax in Chicago, USA, has said that India should also have such kind of taxation law. Following his statement the Bharatiya Janata Party (BJP) has started fiercely targeting Congress as Prime Minister Narendra Modi labeled that Congress wanted to snatch ancestral property from the people. Meanwhile, the Indian National Congress has distanced itself from Pitroda's statement calling it a personal statement of the Overseas Congress president.

Now, people are wondering What is inheritance tax? and does India have such a taxation system? Below we have discussed all the details about the same. 

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What is an inheritance tax?

Inheritance tax is levied on the property that a person inherits from their parents. Countries including America Japan, Britain, and many others countries have inheritance tax in practice and some of them also charge over 50 percent as tax when someone inherits a property from their ancestors. The tax is imposed to increase revenue.

Does India have an inheritance tax?

Inheritance tax was levied in India till 1985. However, it was abolished during Rajiv Gandhi's government. Then Finance Minister V.P. Singh had said

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that this tax was brought to balance the society and reduce the wealth gap, however, it did not succeed in doing so.

Inheritance tax in different countries

Japan and South Korea have the highest inheritance tax at 55%. France has 45 percent while Britain and America have 40 percent each. Spain, Ireland, and Belgium have 34, 33, and 30 percent inheritance tax respectively. Germany has a 30 percent tax while Chile charges a 25 percent inheritance tax. Greece and Netherlands have 20 percent, Finland has 19 percent, Denmark has 15 percent, Iceland has 10 percent, Poland and Switzerland have 7 percent each, while Italy charges a 4 percent inheritance tax.