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Zerodha's Nikhil Kamath backs inheritance tax? Old video goes viral: Watch
Nikhil Kamath on inheritance tax: In conversation with Mint, Nikhil Kamath had earlier said that there is plenty of precedence to inheritance tax.
Zerodha co-founder Nikhil Kamath backed inheritance tax as he reflected on the need for wealth redistribution when assets are passed down from one generation to the next in an old video which was widely shared on social media.
In conversation with Mint, Nikhil Kamath had then said, “When predicated wealth transfers from one generation to another, there has to be a filter so that a part of it can be redistributed. There is plenty of precedence to inheritance tax.”
Watch Nikhil Kamath's take on inheritance tax here
Why is there a controversy over inheritance tax?
Read more: JPMorgan CEO's praise for ‘tough’ PM Modi: ‘Need a leader like that in US too’
The video generated buzz amid a controversy over the idea of wealth distribution followed by remarks from Sam Pitroda, Chairman of the Indian Overseas Congress. Sam Pitroda talked about the absence of an inheritance tax in India and said that there should be more policies that promote wealth redistribution while citing the US inheritance tax according to which a major portion of an individual's wealth is taxed upon inheritance.
"In America, there is an inheritance tax...It says you in your generation made wealth and you are leaving now, you must leave your wealth for the public," Sam Pitroda said.
Read more: PM Modi's ‘zindagi ke saath bhi…’ dig at Congress over Sam Pitroda's 'inheritance tax' remarks; Kharge reacts
What PM Modi said on inheritance tax and the Congress party?
His remarks were criticised by PM Narendra Modi who accused the Congress party of having "dangerous intentions" to seize assets and rights from the people, while addressing an election rally in Chhattisgarh.
“The dangerous intentions of Congress are coming to forth one by one and now it says it will impose inheritance tax. The advisor of 'shehzada' of the 'shahi parivar', who was also the advisor to the shehzada's father, said that more tax should be imposed on the middle class and those who earn by toiling hard," PM Modi said.
What is inheritance tax?
Inheritance tax is a levy imposed on the transfer of assets from deceased persons to their beneficiaries. The tax has been implemented in various countries with the aim to redistribute wealth and promote economic equality.
