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Business News/ Politics / News/  Inheritance Tax triggers blame game: Congress says 'Modi sarkar' wanted 'estate duty', BJP puts blame on Chidambaram
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Inheritance Tax triggers blame game: Congress says 'Modi sarkar' wanted 'estate duty', BJP puts blame on Chidambaram

Congress leader Jairam Ramesh shared four “facts” to establish that it was PM Narendra Modi's government that wanted to re-introduce the Inheritance Tax or “estate duty”. However, BJP leader Amit Malviya counters with news reports from 2012.

Jairam Ramesh (above). BJP and Congress leaders are in a war of words over Indian Overseas Congress chairman Sam Pitroda's statement on Inheritance Tax. (Abdul Sajid)Premium
Jairam Ramesh (above). BJP and Congress leaders are in a war of words over Indian Overseas Congress chairman Sam Pitroda's statement on Inheritance Tax. (Abdul Sajid)

Senior Congress leader Jairam Ramesh on Wednesday alleged that it was Prime Minister Narendra Modi who wanted to bring back the Inheritance Tax in 2014, which was abolished by former Prime Minister Rajiv Gandhi in 1985.

Chairman of Indian Overseas Congress Sam Pitroda recently triggered a row after he advocated the concept of inheritance tax prevailing in the US. BJP leaders, including Prime Minister Narendra Modi, criticised Pitroda's comment and said the Congress will continue to loot people even after their death.

In the latest reaction, Congress leader Jairam Ramesh shared four “facts" to establish that it was PM Modi's government that wanted to re-introduce the inheritance tax regime or "estate duty".

"The Congress has no plan whatsoever to introduce an inheritance tax. In fact, Prime Minister Rajiv Gandhi abolished Estate Duty in 1985. But it is the Modi Sarkar that has wanted to do so!," Ramesh said in a post on X. While sharing the "facts" to substantiate his claim, he said:

"Fact One: Jayant Sinha, then Minister of State for Finance, publicly stated that he wanted to introduce Inheritance Tax in 2014.

Fact Two: In 2017, reports emerged that Modi Sarkar was going to re-introduce inheritance tax.

Fact Three: In 2018, Finance Minister Arun Jaitley praised Inheritance Taxes for “spurring large endowments to hospitals, universities in the West".

Fact Four: News reports emerged that Modi Sarkar would introduce an Inheritance Tax in the Union Budget 2019.

Ramesh also shared screenshots of the news articles published with Jayant Sinha and other ministers' comments favouring the idea of inheritance tax.

ALSO READ: Sam Pitroda sparks debate on 'inheritance tax' in India: What is it and what are its income tax implications — explained

BJP blames Chidambaram

Meanwhile, BJP leader Amit Malviya shared a news report and claimed, "It was Chidambaram, who as Finance Minister, in 2012, proposed the horrendous idea of imposing Inheritance Tax."

"Sam Pitroda is only furthering the Congress argument and suggesting that it should be ‘redistributed’. Basically, taxed in life and death, too," Malviya added.

Malviya too shared a news report published in 2012. The report was headlined 'Time for debate on inheritance tax: Finance Minister P Chidambaram'.

What is inheritance tax?

Inheritance tax, also known as estate tax, is a tax levied on the total value of money and property of a deceased person before it is distributed to their legal heirs. The tax is typically calculated based on the value of the assets left behind after any exemptions or deductions.

In India, the concept of levying tax on inheritance does not exist as of now. The Inheritance or Estate Tax was abolished in 1985.

What did Sam Pitroda say?

Pitroda, the chairman of the Indian Overseas Congress, recently talked about the inheritance tax law in the US and referred to the "redistribution of wealth" issue.

"In America, there is an inheritance tax. If one has 100 million USD worth of wealth and when he dies he can only transfer 45 per cent to his children, 55 per cent is grabbed by the government. That's an interesting law. It says you in your generation, made wealth and you are leaving now, you must leave your wealth for the public, not all of it, half of it, which to me sounds fair," Pitroda had said.

Pitroda, however, sought to clear the air saying it is unfortunate that what he said as an individual on inheritance tax in the US is twisted by "godi media" to divert attention from the "lies" Modi is spreading about the Congress manifesto. Modi's comments on Mangal Sutra and gold snatching are simply unreal, he added.

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Published: 24 Apr 2024, 06:43 PM IST
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