Inheritance Tax:
A prominent political leader of India’s opposition party has expressed interest in the proposed legislation on Inheritance Tax.
- There has been a lot of discussion about using inheritance tax as a tool for redistribution of wealth to address Income Inequality in India.
- Inheritance tax is a tax paid for inheriting a property or asset from a deceased person.
- It is levied on the value of the inheritance received by the beneficiary, and it is paid by the beneficiary.
- Depending on the country, it can be as high as 55%.
- A person can receive inheritance either under a Will or under the personal law of the deceased.
- In India, the concept of levying tax on inheritance does not exist now.
- The first step is to determine the total value of assets.
- This involves assessing the value of all assets owned by the deceased, including real estate, investments, bank accounts, vehicles, and personal belongings, while also considering any outstanding debts or liabilities.
- Whether or not inheritance tax applies depends on several factors, including the total value of the estate and the laws of the jurisdiction.
- In some places, certain beneficiaries, such as spouses or children, may be exempt from paying inheritance tax or may receive a reduced tax rate.
