Inheritance Tax- Its Desirability and Impact on Reducing Economic Inequality in India

Abstract

It's always said that if you have a rich parent, you need not worry about your future, as your life is settled and taken care by them, but don't you think it's unfair on the other section of the society who are not that privileged to enjoy their life without any efforts of their own, this is called nepotism, which is most commonly seen in India society in various fields like cinema, Politics, Business etc. how to overcome this inequality? How to stop this social injustice? The answer to this question as per few experts in the country is Inheritance tax, meaning when you inherit the wealth of your rich parents you will be levied tax on the wealth you inherit (Rathee, 2020). There was tax levied in India similar to Inheritance Tax decades back called by the name Estate Duty, levied according to The Estate Duty Act, 1953, but not in practice in the current time. Hence in this article an attempt is made to educate the readers on what is Estate Duty as per regulations? Why was Estate Duty abolished in India? International outlook to inheritance tax. Whether Inheritance to be reintroduced, is it desirable to India in future? And factors to be considered in implementing inheritance Tax.