The notorious Inheritance Tax was a crude mechanism solely aimed for the asset transfer from the dead to the eligible living to let down the disparity of injustice and inequality amongst families or government. In India it was applied by the British on 1953 while it was withdrawn by the Rajiv Gandhi Government on 1985.
Currently before the elections, Mr. Narendra Modi addressed at a gathering that “Inheritance Tax cannot remove inequality”.
However, currently India has no inheritance tax has certain by the central government, but can be validated as an additional taxes.
- Income Tax: You are required to pay income tax on any income generated by an inherited asset, including rent, interest, and other types of income. The revenue from the business or property is taxable when filing an income tax return.
- Capital Gains Tax: Heirs must pay tax on capital gains on the earnings of the sale of inherited property, such as stocks or real estate. Two examples of variables that affect the tax rate are the kind of asset and the length of time the holding is held.
- Gift Tax: Even in cases where there is no specific inheritance tax, gifts obtained during an individual’s entire life may be subject to gift tax under the Income Tax Act. The Income Tax Act states that any expensive gift from family members is taxable.
