Hotmail co-founder Sabeer Bhatia has called on India to consider a 55% inheritance tax, arguing that opportunities should be based on what individuals build rather than what they inherit from their family members.<\/p>\n
\u201cIf India wants to become a truly competitive nation, it should consider a 55% inheritance tax. Opportunity should come from what you build – not simply from what you inherit,\u201d he said in an X (formerly Twitter) post on Saturday.<\/p>\n
What is inheritance tax?<\/p>\n
An inheritance tax is a charge paid by a person who inherits money or property from a deceased person, whereas an estate tax is a levy on the estate, including money and property, of a deceased individual.<\/p>\n
Inheritance<\/a> taxes vary widely in different parts of the world (where they are applicable). Depending on how a country structures the tax, it can be charged on the estate before assets are transferred or on what the beneficiaries receive.<\/p>\n Did India ever have an inheritance tax?<\/p>\n India currently has no inheritance tax.<\/p>\n However, the country had an inheritance-related tax regime in place for several decades under the Estate Duty Act, 1953. The tax was levied on property transferred after a person’s death, with the amount determined by the value of the estate above the exemption threshold of \u20b91.5 lakh.<\/p>\n Also Read | Interest or dividends? Know which form to submit to avoid TDS on such income<\/a><\/p>\n Estate duty rates in India were among the highest, with the top rate reaching 85%. The levy was introduced with a broader aim to narrow income disparity among people, but the government eventually abolished it in 1985 during Rajiv Gandhi\u2019s tenure as prime minister.<\/p>\n How did X users react to Bhatia’s post?<\/p>\n Bhatia’s post quickly became viral on the social media platform. While many users did not agree with his suggestion, others supported the idea and shared their own views on why they believe such a tax may be needed in India.<\/p>\n A user wrote: \u201cYou mean that parents who have been building for their kids all their lives must give half to the government? The government is not my kid. What problem is this solving?\u201d<\/p>\n Responding to that remark, Bhatia asserted that parents should not make their kids weak by building for them. \u201cYou give them the tools to succeed, like education and good values. You don\u2019t give them wealth. You weaken them when you give them wealth,\u201d he added.<\/p>\n Another person supported his suggestion. \u201cIn an ideal world there shouldn\u2019t be any inheritance of any material kind except knowledge and values. Everyone should start from the same ground zero. But even if it is allowed for motivation then also it should be limited to type of inheritance or limited like you mentioned. Either only non-liquid assets should be allowed or limited to as you said to some percentage,\u201d the X user said.<\/p>\n Who is Sabeer Bhatia?<\/p>\n Bhatia is an Indian-origin entrepreneur who attended BITS Pilani<\/a> before moving to the United States in 1988.<\/p>\n He went on to study at the California Institute of Technology (Caltech) and later completed a master\u2019s degree in electrical engineering at Stanford University.<\/p>\n Also Read | Who is Karandeep Anand, Disney\u2019s first-ever chief technology officer?<\/a><\/p>\n