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Many countries have estate duty. Why it is not there in India?

Pushkar Tiwari, Ajmer

Yes, estate duty is one of the common forms of direct taxes. India did have estate duty till some two decades ago but gave it up by keeping the relevant legislation under suspended animation so much so that it can be revived anytime.

The Left has been favourably disposed towards reviving the dormant legislation. The proponents have it that estate duty, being an inheritance tax, is very much justified on the ground that nobody should get anything on a platter. Inheritors after all have not worked to earn the property bequeathed to them, goes the argument.

The counter to this is that in matters of private property, one cannot be unduly moralistic or socialistic and if somebody has a good fortune of being born into a rich family, so be it. Not everyone would share Warren Buffet’s touching concern that a fortune of a person should not be dependent on the womb he was born into. Anyway, in my personal view, the Government should re-look the entire issue and rationalise the system of taxing both gifts and inheritance so that they are in harmony with each other.

S. MURLIDHARAN

More Stories on : Income Tax | For the Asking

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