Much Ado About Nothing? An Update On Estate Duty Being Re-Introduced In India

Presently, India does not have an estate duty. The Estate Duty Act, 1953 which sought to impose an estate duty in India on property passing on demise was repealed in the year 1985. Is the estate duty a relic of the past? Rumours are rife that an estate duty will soon be re-introduced in India. Further, while there is no specific gift tax legislation in India today, gifts among 'relatives' as defined in the domestic tax legislation are exempt from taxes. Thus, the transfer of assets through testamentary or intestate succession is not subject to any tax today. That said, albeit there has been no formal statement by the Indian Government, the abolition of the Wealth Tax Act, 1957 and the amendments to tax provisions governing trusts (in 2017) have somewhere left taxpayers and tax professionals second guessing when and how the estate duty shall be reintroduced (if at all!).