NEW DELHI: To strike Congress, Modi is using Sam Pitroda's remark that there should be a discussion in India about inheritance tax in the United States. "If a person has assets worth $100 million, his children will inherit only 45 percent of his assets after his death. The remaining 55 percent will be seized by the US government. That is a very interesting law. I think it is fair that at least half of the wealth acquired by your generation should be public property. In India, if a person with 1000 crores of wealth dies, his children get the entire wealth. The public gets nothing. There should be a debate on this in the country. Distribution of property is a matter of policy," Pithroda said.

US Inheritance Tax

Twelve states levy estate tax and six states levy inheritance tax. Inheritance tax is applicable on the earnings of the deceased in these six states. A fixed percentage of the value of the total savings after deductions is taxed. Money should also be taxed. The tax is payable on the amount above ten lakh dollars. The tax is collected from the legal heirs of the property. USA Today reported that only two percent of taxpayers fall within this threshold. Inheritance tax is the highest in Japan at 55 percent.

Inheritance Tax

• Japan 55%
• South Korea 50%
• France 45%
• America 40%
• Britain 40%

In India

• It was implemented under the Estate Duty Act in 1953
• The objective was to reduce the economic imbalance of the people and increase the revenue of the government
• A way to tax the super-rich
• The tax had to be paid by the heirs who received the property after death
• 85% tax on property value above Rs 20 lakh
• The wealthy classes strongly opposed this
• It was cancelled by the Rajiv Gandhi government in 1985

Both Congress and BJP were in favour

• Both the Congress and the BJP have raised this idea on several occasions.
• In 2014, Jayant Sinha, who was the Minister of State for Finance in the Modi government, demanded the implementation of 55% inheritance tax.
• In 2018, Finance Minister Arun Jaitley also supported this
• In 2017 and 2019, there were reports that the Modi government was planning to implement this