'Inheritance tax will bring more people under the tax net': Zerodha's Nikhil Kamath's old video goes viral. Watch here
'inheritance tax' in India, an old video featuring Nikhil Kamath, co-founder of Zerodha, where he is discussing the issue with Mint, has surfaced. In the video, Kamath expresses his support for inheritance tax in India. “When wealth is passed down from one generation to another, there needs to be a mechanism in place to redistribute a portion of it.
Inheritance tax has ample precedence," Kamath stated in this conversation with Mint. His comments coincide with a wider discussion on wealth distribution, prompted by recent remarks from Sam Pitroda, Chairman of the Indian Overseas Congress, on the inheritance tax in the US. "South Korea, America, and the UK have inheritance taxes, known as estate taxes.
For India, where only about 3% of the population pays income tax, implementing an inheritance tax could bring more people under the tax net," Kamath asserted in the video. He further suggested that such a measure targeting the 'extremely affluent' could provide the government with the necessary resources to undertake required reforms. Kamath added that inheritance tax could be a viable means to achieve this objective.
Some argue against implementing an inheritance tax in India, stating that it may not be justified. “An inheritance tax disincentivises people to work hard and could lead the country backward," said Mumbai-based investment and tax expert Balwant Jain. In his view, implementing an inheritance tax does not serve the national interest.
The concept of an inheritance tax is not new to India. This tax was prevalent in India before it was abolished in 1985. Introduced in 1953 under the Estate Duty Act, the inheritance tax aimed to reduce economic disparity.
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