What is inheritance tax: Inheritance tax is the tax that is levied on the property of a person after his death, which is to be given to the heirs. In many countries inheritance tax is more than 50%.
Inheritance tax: Inheritance tax in English and inheritance tax in Hindi. On Wednesday, Indian Overseas Congress President Sam Pitroda said something on this inheritance tax that created a political uproar in India, which is in the middle of Lok Sabha elections. Bharatiya Janata Party got another opportunity to attack Congress. On the other hand, Sam Pitroda presented clarification regarding his statement. You must have seen and read what happened at the political level. Here we are giving you detailed information about Inheritance Tax, what it is, when and how it is levied and how much it is levied.
Inheritance tax is actually a tax that is levied on property, but it is not wealth tax. Inheritance tax is mainly mentioned many times in America. According to the American definition, this is the tax that is levied on the property that the heirs have to receive after the death of a person. The special thing is that this tax is levied before the inherited property is transferred.
In America this tax rate is 40 percent. This means that whatever a person has earned throughout his life, his heirs cannot inherit the entire amount. Suppose, there is property worth Rs 1 crore, which goes to the heirs. After the death of the person, a tax of Rs 40 lakh will be levied on the property before it is transferred to the names of the heirs. This means that only property worth Rs 60 lakh will be given to the heirs. If the number of heirs is 2 or 3, then tax will be levied according to the amount of property that is coming in everyone’s share.
How much tax in which country
| Country | Tax |
| Japan | 55% |
| South Korea | 50% |
| Germany | 50% |
| France | 45% |
| England (UK) | 40% |
| America (US) | 40% |
| spain | 34% |
| Ireland | 33% |
Why is inheritance tax imposed?
Now the question arises that why are such heavy taxes imposed by the government in many countries? The main objective of the government to impose such tax is to generate revenue. When the government gets money, it will be able to spend more on development works and the country will progress.
Another objective of the government is to distribute more capital in the society. Governments of many countries want that all the capital should not remain limited in the hands of a few people. This is called Wealth Redistribution. Bhoodan movement went on in India from 1948 to 1952. Its architect was Vinoba Bhave. Then many people of India voluntarily donated their land.
When and why was this tax removed from India
Inheritance tax is no longer imposed in India. It was abolished in 1985 during the Rajiv Gandhi government. The then Finance Minister V.P. Singh was of the opinion that it had failed to bring balance to society and reduce the wealth gap, although it had good intentions.
