Inheritance Tax : Oxfam Report
Oxfam report says that 70% of countries dont have any form of inheritance tax on wealth.
- The report comes on the backdrop of increased inequalities in income, wealth and possession of resources.
- Inheritance tax that was levied against a particular asset during the time of its inheritance.
- It comes under direct tax and a person can receive inheritance either under a will or under the personal law of the deceased.
- The Inheritance or Estate Tax was abolished with effect from 1985.
- In India, the concept of levying tax on inheritance does not exist now.
- In the event of the death of an individual, properties belonging to the deceased would pass on to his legal heirs, a transfer without any consideration in return. Hence, it could qualify as a gift for income tax.
- The Income Tax Act, of 1961, specifically excludes the transfer of assets under will or inheritance from the purview of gift tax.
- The person receiving the inheritance has to pay tax on the income earned (rent, interest, etc.) in respect of the assets inherited by him once he becomes the owner of the same.
- The person has to pay capital gains tax when he sells the inherited asset.