Firozabad, UP:

Uttar Pradesh Chief Minister Yogi Adityanath on Thursday likened the Congress “proposal” to impose an inheritance tax to the jizya levied on the Hindus during Aurangzeb’s rule, and also accused the party of encouraging cow slaughter.

He made the remarks at an election rally in Firozabad. He also held a roadshow in Mainpuri.

Addressing a public meeting in Firozabad in support of BJP candidate Rajveer Singh, Mr Adityanath said the Congress’ manifesto suggested granting minorities the freedom to consume food according to their preferences.

“The majority of Indians say that we do not eat beef, but some people deliberately encourage cow slaughter to irritate them,” he was quoted as saying according to a press statement issued in Lucknow.

A new version of the Congress-SP alliance has emerged, proposing the imposition of inheritance tax, Mr Adityanath alleged likening this “proposal” to Aurangzeb’s imposition of jizya tax on the Hindus.

The row over inheritance tax erupted after Sam Pitroda, chairperson of the Indian Overseas Congress, had spoken about inheritance tax in the US while delving into the issue of redistribution of wealth. The Congress, however, distanced itself from the remarks.

In Etah, Mr Adityanath held a rally in support of BJP candidate Vishwadeep Singh. In the rally, he said that Baba Saheb Bhimrao Ambedkar opposed reservation on the basis of religion, yet the Congress is allegedly seeking to impose Taliban-like governance with the aim of “Islamising” India.

“By doing so, the Congress is maliciously attempting to sow division in the country once again. Beware of the alliance between the Congress and the SP. These parties aim to prioritise reservation for Muslims over backward castes and Scheduled Castes,” he further said.

He said that the voters are faced with a choice between those who “betray” Lord Ram and those who are the devotees of Ram.

Adityanath held a roadshow in Mainpuri, where he accused the Congress and the SP of trying to divert reservation for SCs, STs and OBCs to the minorities.

“The SP-Congress alliance is part of a conspiracy aimed at dragging India back to slavery. These individuals are plotting to undermine the reservation for the Scheduled Castes, tribals, and backward castes, diverting it to the minorities,” Mr Adityanath was quoted as saying in the press note.

The Uttar Pradesh chief minister made the remark at a roadshow in support of BJP candidate Jaiveer Singh in Mainpuri, an SP bastion, where he was showered with flowers from people standing atop bulldozers amid echoes of ‘Bharat Mata ki Jai’.

The BJP government in Uttar Pradesh has used bulldozers to raze buildings owned by “criminals”, and the machine is projected as a “symbol” of law and order.

Braving the scorching heat, the people of Mainpuri thronged the streets to welcome Mr Adityanath, the press note added. Several bulldozers, stretching from the Arya Samaj complex to the Bhavant intersection, lined the roads during the roadshow.

Yogi Adityanath said the entire life of former chief minister Kalyan Singh was devoted to Shri Ram and the progress of the state.

“The SP failed to offer even a single word of condolence on his demise. I personally visited Mulayam Singh’s residence following his death. PM Modi extended his condolences as well.

“The Samajwadi Party, which is focused on family interests, insulted Kalyan Singh and disrespected the faith. They should face consequences for their alliance with the Congress,” he said.

Polling in Mainpuri, Etah and Firozabad is scheduled on May 7.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

AIMIM chief Asaduddin Owaisi on Sunday jumped into the bitter fight between the BJP and the Congress that was triggered by Prime Minister Narendra Modi’s remarks about Muslims, and claims of “wealth redistribution… to those who have the most children… to infiltrators”.

At a rally in Hyderabad on Sunday, Mr Owaisi hit back at the Prime Minister’s “those who have the most children” remark by declaring “Muslims use condoms most” and took a jibe at the ruling party’s ‘Modi ki guarantee’ tagline, saying, “(the PM) has only one guarantee… hate Dalits and Muslims.”

“Why are you creating fear that Muslims produce more children? According to data from the Modi government, the population growth and fertility among Muslims has decreased. Muslims use condoms most, and I have no shame in saying this…” Mr Owaisi thundered.

‣ @narendramodi की एक ही गारंटी है, दलितों और मुसलमानों से नफ़रत करो।

‣ एक मुल्क का वज़ीर-ए-आज़म इस मुल्क की 15 फ़ीसद अवाम को घुसपैठिया कहता है, इससे शर्मनाक बात कुछ और नहीं हो सकती। pic.twitter.com/87mIdAfiAi

— Asaduddin Owaisi (@asadowaisi) April 27, 2024

“Narendra Modi is instilling fear among Hindus that Muslims will become majority community. How long will you create fear about the Muslims? Our religion is different but we belong to this country.”

Neither the BJP nor the Prime Minister have, so far, responded.

The fierce fight between the BJP and the Congress, as well as opposition parties allied to the INDIA bloc, erupted after Mr Modi’s remark this month at an election rally in Rajasthan’s Banswara.

Referring to plans in the Congress’ manifesto for an “economic and institutional report” as part of the national caste survey, and combining that with a remark by his predecessor, Dr Manmohan Singh, the PM said, “Congress says they will calculate gold with mothers and sisters… and distribute that property…. Manmohan Singh’s government said Muslims have first right on all resources…”

READ | Row After PM Says “Congress To Distribute Assets Among Infiltrators”

“… to whom will this be distributed? It will be distributed among those who have more children. It will be distributed to infiltrators. Should your hard-earned money go to the infiltrators?” he said.

NDTV FACT CHECK | Has Congress Really Promised ‘Wealth Redistribution’?

Mr Modi’s remarks provoked an angry response from the Congress, which accused Mr Modi of lying to divert voters’ attention from genuine issues. The party pointed out its manifesto made no such claim, and Rahul Gandhi later explained that the survey and its components were an “important step” in understanding how sections of the society had developed and what is needed to ensure equality.

READ | “Have Not Said…”: Rahul On “Wealth Redistribution” Row, PM’s Jabs

The party also complained to the Election Commission. A notice was sent to BJP chief JP Nadda – and his Congress counterpart Mallikarjun Kharge, after a complaint was filed against Mr Gandhi.

In a significant move, both party chiefs were told to ensure their campaigners followed guidelines for a “higher quality of political discourse”. They were told to file responses by 11 am this morning.

READ | BJP Gets Notice In Delhi, PM’s Inheritance Tax Jibe In Madhya Pradesh

The AIMIM boss is contesting the Hyderabad Lok Sabha seat in this election, which has been a stronghold of his family since 1984, when his father, Salahuddin Owaisi won it off the Congress.

In 2019 he secured over 60 per cent of the votes but could face a stronger test this time, particularly from the BJP’s Madhavi Latha. The two went head-to-head earlier this month after a video seemed to show the BJP leader – decked in saffron and garlanded with yellow flowers – pretending to draw and fire an arrow during a Ram Navami procession/campaign rally near a mosque.

READ | “Where Did Mosque Come From?”: BJP Candidate On “Imaginary Arrow”

Mr Owaisi slammed the “vulgar, obscene, and provocative” action, while Ms Latha claimed the video was “incomplete” and being circulated online “to create negativity”. “… if anyone’s feelings are hurt due to such a video, I would like to apologise…” she said on X (formerly Twitter). A police case was file. She hit back last week, accusing her rival of inciting people by discussing “religion and beef”.

Hyderabad will vote with the rest of Telangana and Andhra Pradesh on May 13. Results are on June 4. 

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Belagavi (Karnataka):

Prime Minister Narendra Modi on Sunday accused Congress leader Rahul Gandhi of insulting India’s Rajas and Maharajas, but remaining silent on the atrocities committed by Nawabs, Nizams, Sultans and Badshahs for the sake of appeasement politics.

He also continued his attack against the Congress on the “inheritance tax” issue and targeted the party’s government in Karnataka on law and order issues.

The BJP is working on increasing the assets of the people, but Congress’ shahzade (Rahul Gandhi) and his sister (Priyanka Gandhi Vadra), both are announcing that if they come to power, they will do the ‘X-ray’ of the country, PM Modi said.

“They will x-ray your property, bank lockers, lands, vehicles, also ‘Streedhan’ and ornaments of women, gold, the Mangalsutra. These people will raid every house and capture your assets. After capturing they are talking about redistributing it, they want it to give it to their loved vote bank…will you allow this loot to happen?” he asked.

There’s wide-scale support for the NDA across Karnataka. Addressing a huge rally in Belagavi. Watch. https://t.co/OVJdH0q3kf

— Narendra Modi (@narendramodi) April 28, 2024

“I want to alert Congress,” PM Modi said, asserting that “leave this intention. Until Modi is alive, I will not allow it… “

Addressing a mega public meeting here, he said, “Congress has ensured the writings of our history and our freedom struggle with an eye on appeasement and vote bank. Even today, the Congress’ shehzade (prince) is carrying forward that sin. You might have heard Congress’ shehzade’s recent statement — he says Bharath’s Rajas and Maharajas were atyachari (oppressive).”

“He (Gandhi) has accused them (Rajas and Maharajas) of usurping the lands and properties of people and poor…Congress’ shehzade has insulted great personalities like Chhatrapati Shivaji Maharaj and Kittur Rani Channamma, whose administration and patriotism inspire us even today,” the prime minister said.

Recalling the contribution of the erstwhile Mysuru royal family for which they are respected across the country even today, he said, “The Congress’ shehzade’s statements were intentional, aimed at vote bank politics and appeasement.” “Shahzade spoke ill about Raja, Maharajas, but the shahzade’s mouth was locked regarding the ‘atyachar’ that Nawabs, Nizams, Sultans and Badshahs committed in India’s history. His mouth was shut on them, but on Raja, Maharajas he speaks ill and insults them,” he said.

Noting that Mr Gandhi cannot remember Mughal emperor Aurangzeb’s oppressions, PM Modi said, “He (Aurangzeb) impured a number of our temples and destroyed them. Congress is happily making alliances with parties that praise Aurangzeb…they don’t remember people who destroyed our religious places and indulged in killing, killing of cows. They don’t remember the Nawab, who played a role in the partition of India.” He further recalled the contributions of the Raja of Banaras in setting up Banaras Hindu University, and Maharani Ahilyabai Holkar in the reconstruction of temples.

“It was the Maharaja of Baroda who had identified the talent of Ambedkar…the Congress’s shehzade doesn’t remember the contributions of Rajas and Maharajas. For vote bank they show the guts of speaking against Rajas and Maharajas, but don’t have the strength to speak against Nawabs, sultans and Badshahs,” he said adding that Congress’ “appeasement mindset” has come out in the open before the country, and the same reflects in their manifesto.

Veteran BJP leader B S Yediyurappa, the party’s candidate from Belgaum (Belagavi) former Chief Minister Jagadish Shettar, and Chikkodi candidate Annasaheb Shankar Jolle, were among those present.

Since the time Congress came to power in Karnataka, the law and order situation in the entire state has worsened, PM Modi alleged, recalling the atrocity against an adivasi woman in Belagavi and the killing of a Jain monk in Chikkodi. These shameful incidents have degraded Karnataka’s pride.

Citing the recent murder of a Hubballi student, Neha Hiremath, at her college premises that created “sensation” in the country, he said, the family sought action, but the Congress government gave priority to appeasement.

“For them, the lives of daughters like Neha have no value, they think only about their vote bank.” Even when there was a bomb blast in a Bengaluru cafe, the Congress government did not take it seriously initially; they even termed it a cylinder blast initially. “Why are you — Congress — lying to the people of the country, if you can’t, leave and go home,” PM Modi said.

The Congress for the sake of votes is taking support of banned PFI — the anti-national organisation that supported terrorism. “To win one seat in Wayanad, are you surrendering to them? BJP has banned PFI and has put its leaders behind bars,” he said.

PM Modi said Congress has come up with a “dangerous” formula of “inheritance tax”, according to which the party, in the event of coming to power, will tax what one saves for his children, either money or property.

“They (Congress) say, you cannot give what you save for your children. If you have to give, you have to pay 55 per cent tax on it…to distribute to its vote bank they want to capture your assets,” he alleged.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Indian Overseas Congress chief Sam Pitroda’s remarks on the US’s inheritance tax have sparked a political whirlpool here in India amid the ongoing Lok Sabha elections.

Mr Pitroda stirred up a massive controversy while countering the Prime Minister over his allegations that Congress plans to redistribute the nation’s wealth, citing a US example of inheritance tax law.

“If a person has property worth US dollars 10 million, then after his death, 45 per cent of the property goes to his children and 55 per cent of the property goes to the government,” Mr Pitroda told ANI and added that there is no such law in India.

“Such issues should be discussed. We are talking about policies that are in the interest of the people, not just the rich,” he added.

What is the Inheritance Tax law in US?

Firstly, the tax is not common in the US and is only in force in six states out of the 50. The tax is imposed on the recipients who inherit assets of a person who has died. The taxation depends on the state in which the person lived or owned property. 

There’s a stark difference between Estate Tax and Inheritance Tax in the US. The former is levied on the estate itself before it is distributed, while the latter is only against the beneficiaries. 

Inheritance taxes are collected by six US states: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.

Key factors involved and how is it calculated

It is not a Federal tax. It is levied based on the inheritor’s relationship with the person and the value of the property. It is applied only to the portion of the inheritance which exceeds the exemption limit. Above the threshold limit, the tax is usually assessed on a sliding basis and the rates vary from single digits and can go up to 18%.

For example in Pennsylvania, The tax rate is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs.

In Iowa, if the property is valued at less than $25,000 (Rs 20.83 lakh) then no tax is due. In Maryland, inheritances from estates smaller than $50,000 (Rs 41.66 lakh) are also exempt.

To summarize, the closer an inheritor is to the asset owner, the lower the tax rate would be levied. In all six states, spouses of the owner are exempted. 

In the United Kingdom, a 40% inheritance tax is levied on assets worth over 325,000 pounds (Rs 3.37 crore). 

Japan has a high inheritance tax rate with the current highest rate standing at 55%. The rate is determined based on how much money is received by each statutory heir. Meanwhile, South Korea boasts a 50% inheritance tax rate. In 2021, The family of deceased Samsung Electronics chairman Lee Kun-hee said it would pay more than 12 trillion won ($10.78 billion) in inheritance taxes for the estate of the late patriarch.

Did India Ever Have An Inheritance Tax?

An inheritance tax law existed in India until former Prime Minister Rajiv Gandhi scrapped it in 1985. An Estate Duty was a form of tax that was calculated at the time of a person’s death, it was introduced through the Estate Duty Act, 1953. It was payable only if the total value of the inherited portion of the property exceeded the exclusion limit. In India, it was set as high as 85% on properties. Properties worth at least Rs 1.5 lakh, were taxed at a rate of 7.5%. The objective was to narrow the income disparity but was scrapped in 1985. 

“As both wealth-tax and estate duty laws apply to the property of a person, the former applying to his property before death and the latter after his death, the existence of two separate laws with reference to the same property amounts to procedural harassment to the taxpayers and the heirs of the deceased who have to comply with the provisions of two different laws. Having considered the relative merits of the two taxes, I am of the view that estate duty has not achieved the twin objectives with which it was introduced, namely, to reduce the unequal distribution of wealth and assist the States in financing their development schemes,”  former Prime Minister VP Singh, who was the Finance Minister in Rajiv Gandhi’s Cabinet, said in his budget speech.

“While the yield from estate duty is only about Rs. 20 crore, its cost of administration is relatively high. I, therefore, propose to abolish the levy of estate duty in respect of estates passing on deaths occurring on or after 16 March 1985. I come forward in due course with suitable legislation for this purpose,” he added.

A report by the Economic Times states that India’s inheritance tax was repealed in 1985 because it neither helped bring down economic inequality in society nor did it contribute significantly, In 1984-85, the total tax collected under the Estate Duty Act was Rs 20 crore, but the cost of collection was very high because the complex calculation structure spawned a lot of litigation.

For example, according to the 1980-81 regular budget, the gross tax revenue in the 1979-80 period was Rs 11,447 crore, out of which the Estate Duty contributed only Rs 12 crore which was later revised to Rs 13 crore, i.e 0.1% of the total gross tax revenue. In the budget, the Estate Duty collection was projected to be the same, Rs 13 crore.

In the 1978-79 budget, the Tax revenue in the previous budget was Rs 10.75 crore of the total revenue of Rs 9,005.46 crore. The projection for the 1978-79 budget was Rs 11 crore out of Rs 9,636 crore, i.e. 0.1% of the total tax revenue.

Poor implementation and loopholes in tax collection helped people avoid paying Estate Duty.