Sam Pitroda inheritance tax debate: What is inheritance tax in India

economictimes.indiatimes.com:

Sam Pitroda, the chairman of the Indian Overseas Congress, made comments about inheritance tax that led to a political controversy. Prime Minister Modi criticized the Congress party, claiming that they intend to impose higher taxes and prevent individuals from passing on their hard-earned wealth to their heirs. In response, the Congress party distanced itself from Pitroda's statements. Party spokesman Jairam Ramesh pointed out that former Prime Minister Rajiv Gandhi had abolished estate duty in 1985.

Pitroda backed the idea of an inheritance tax and cited the example of the US. «Nothing wrong in accumulating wealth but to what point? Let me tell you, in America there's an inheritance tax. So, if let's say one has $100 million worth of wealth, and when he dies he can transfer probably 45% to his children, 55% is grabbed by govt. Now that's an interesting law. It says you, in your generation made wealth, and you are leaving now, you must leave your wealth for the public — not all of it, half of it, which to me sounds fair. In India you don't have that. If somebody is worth $10 billion and dies his children get $10 billion. The public gets nothing. So these are the kinds of issues that people will have to debate and discuss.»

Here is a look at what inheritance tax is.

What is inheritance tax?

Estate and inheritance taxes are two types of taxes that are imposed when a person passes away. Although they are both related to death, they have different targets. Estate taxes are applied to the total value of the deceased