In recent years, the global discourse on wealth and inequality has gained momentum, with India, boasting a burgeoning economy and a diverse socio-economic landscape, being no exception. As the wealth gap widens, there is a pressing need for policies addressing the concentration of wealth among a few and promoting a more equitable society. Inheritance tax, a levy imposed on the transfer of wealth from a deceased person to their heirs, serves as a tool used by governments worldwide to redistribute wealth and reduce economic inequality.
However, in India, the inheritance tax was abolished in 1985. Rising inequality in India Globally, according to Oxfam's Inequality Inc report (January 2024), the fortunes of the richest five men in the world have doubled since 2020, while nearly five billion people have experienced a decline in wealth during the same period. This stark contrast underscores the pervasive hardship and hunger faced by many worldwide, with poverty projected to persist for another 230 years, despite the possibility of having the world's first trillionaire in the next 10 years.
India's economic growth post liberalisation (1990s) has undeniably lifted millions out of poverty and created a vibrant middle class, yet it has also resulted in a disproportionate accumulation of wealth. Oxfam's 2021 report revealed that the top 10% of the population in India possesses 77% of the total national wealth, while the bottom 50% owns a mere 6%. According to the Credit Suisse Global W.