New Delhi:

Congress veteran Sam Pitroda, who heads the party’s overseas unit, has courted a new controversy after claiming that the threat from China is often blown out of proportion. His suggestion that India needs to stop considering China as an enemy drew a sharp backlash with the ruling BJP calling out the Congress party over its “obsessive fascination for China”.

The remarks by Mr Pitroda, who is not unknown to controversies, follow his leader Rahul Gandhi’s assertion in the parliament that India had lost a part of its territory to China, a claim that has been trashed by the government. Speaking to IANS, the Congress leader claimed that India’s approach to China has been confrontational and that mindset needed to change.

“I don’t understand the threat from China. I think this issue is often blown out of proportion because the US has a tendency to define an enemy. I believe the time has come for all nations to collaborate, not confront. Our approach has been confrontational from the very beginning, and this attitude creates enemies, which in turn garners support within the country. We need to change this mindset and stop assuming that China is the enemy from day one,” he said in the interview.

The reply came to a question on whether Prime Minister Narendra Modi and US President Donald Trump would be able to control the threats from China.

Hitting back, the BJP said the crux of the Congress’s obsession with China lies in a 2008 Memorandum for Understanding between the Congress and the Chinese Communist Party, the party that runs the neighbouring country.

“Those who ceded away 40,000 square km of our land to China, still see no threat from the Dragon. No wonder Rahul Gandhi is in awe of China and was rooting for BRI one day before the IMEEC was announced. The crux of Congress party’s obsessive fascination for China, lies hidden in the mysterious 2008 Cong-CCP MOU,” said the BJP’s national spokesperson Tuhin Sinha.

China has been among the US’ major headaches in view of security concerns and trade implications. India too has been engaged in a border dispute with China, which was marked by violent clashes in 2020.

The opposition in India claims the country had lost a chunk of its land to China during these clashes – a claim that resurfaced in Mr Gandhi’s parliament speech earlier this month. Mr Gandhi had claimed China has control over 4,000 sq km of Indian territory, which was refuted by Defence Minister Rajnath Singh.

Pradeep Bhandari, another BJP spokesperson, pointed out that Mr Pitroda is a close aide of Rahul Gandhi and accused the Congress of prioritising China’s interest above India’s.

“Rahul Gandhi’s right-hand man Sam Pitroda : ‘China isn’t our enemy’! This man sings endless praises of China while Congress party’s signing of MoU in 2008 reveals a cozy betrayal of India’s interests & prioritising China’s! It’s crazy how Congress always manages to keep China & Pakistan’s interests above ours,”

“Rahul Gandhi’s remote control is in the hand of George Soros and China,” alleged Mr Bhandari, referring to the billionaire philanthropist accused of trying to influence global politics through his Open Society Foundation.

New Delhi:

Congress veteran and Rahul Gandhi’s close aide Sam Pitroda has said the threat from China is often blown out of proportion, and it is time to recognise and respect that country.

In an exclusive interview with IANS, Mr Pitroda was categorical in his take on India-China relations saying that there is a need to change India’s mindset and stop assuming that China is the enemy.

He said that India’s approach has been confrontational from the beginning. “Our attitude is that of confrontation from day one, and that attitude creates enemies, and that creates certain support in the country. I think we need to change that pattern to assume that China is the enemy from day one. It is not just to China, but to everyone…”

“I don’t know what is the threat from China. I think this issue is often blown out of proportion because the US has the habit of defining an enemy,” he said.

The Congress leader said the time has come for all nations to come together. “I think the time has come for all of us to learn, increase communication, collaborate, operate and co-create and not have this command and control mindset. China is around… China is growing .. you know you got to recognise that and respect that … Every other country is going to grow, some will grow faster, some will grow slower. Those who are very poor have to grow faster, those who are well-accomplished and developed will have slower growth. Those who are developed will also have an ageing population, while those who are developing will have a young population. We will have to look at all these things together,” he said.

Mr Pitroda’s remarks come amid heightened discussions surrounding the recent meeting between US President Donald Trump and Prime Minister Narendra Modi, which included discussions on India-China border tensions.

During their joint press conference on February 13, Trump offered to help mediate the ongoing India-China tensions, signalling a willingness for the US to play a role in de-escalating the situation.

India swiftly dismissed Trump’s offer to mediate in its border dispute with China.

Foreign Secretary Vikram Misri said that India has maintained a bilateral approach in handling its disputes, including those with China. “Whatever issues we have with any of our neighbours, we have always adopted a bilateral approach to dealing with these issues. It’s no different between India and China. We have been discussing any issues that we have with them on a bilateral plane, and we will continue to do so,” he said.

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

Sam Pitroda, the Congress’s overseas unit chief, is back in his post — with an apparent caveat. The party’s communication in-charge Jairam Ramesh said Mr  Pitroda had “given an assurance” that he would, in future, leave no room for controversy. Asked about the matter, Mr Pitroda replied, a trifle sharply, that it was not the Congress view, but the view of Mr Ramesh.

“The Congress is not saying that. Jairam is saying that,” he told NDTV in an exclusive interview today. “What Jairam says is Jairam’s view, it is not necessarily the party’s view. It is okay for Jairam to say that and I respect it. I have to do what I have to do. In the process, I am entitled to make mistakes,” he said.

Mr Pitroda, who had stepped down from his post on May 8 after a couple of comments that became hugely controversial, was reinstated yesterday.

The reappointment was announced by the party in a statement. Later in the evening, Mr Ramesh said the decision was taken after Mr Pitroda clarified the context of the statements and gave an assurance that he would not “leave room for such controversies to arise” in the future.

In a post on X, Mr Ramesh said, “During the recent election campaign Sam Pitroda had made some statements and comments that were totally unacceptable to the Indian National Congress. By mutual consent he stepped down as Chairman of Overseas Indian Congress.”

“Subsequently he clarified the context in which statements were made and how they were later distorted by the Modi campaign. The Congress President has reappointed him on the assurance that he will not in future leave room for such controversies to arise,” he had added.

During the recent election campaign Sam Pitroda had made some statements and comments that were totally unacceptable to the Indian National Congress. By mutual consent he stepped down as Chairman of Overseas Indian Congress. Subsequently he clarified the context in which…

— Jairam Ramesh (@Jairam_Ramesh) June 26, 2024

Mr Pitroda had stepped down from the party’s overseas post after his comment that India is a “diverse country… where people in the East look like the Chinese, people on West look like Arabs, people in the North look like maybe White and people in South look like Africans.”

It had triggered allegations of racism and colonial mindset. With the controversy of Mr Pitroda’s earlier comments yet to die down, the Congress had found itself firefighting on multiple fronts, its campaign focusing on unemployment, inflation, farmers issues and the Constitution completely overshadowed.

In April, Mr Pitroda had made a remark on inheritance tax in the US that had drawn a fierce attack from the BJP. He had cited inheritance tax as an example of “new policies that can “help prevent concentration of wealth” which should be discussed and debated. The Congress, he had added, always helps people at the bottom of the economic pyramid.

Mr Pitroda today admitted that he could perhaps have put it better, while making the point that the focus today is not about the meaning in a conversation but its form.

What cannot be questioned, he underscored, was his commitment to the Congress.

“I am grown up. I know my responsibility for my party. I am committed to Congress. I have been a congressman from Day One and I will remain a Congressman till I die… It has nothing to do with what I say… but my commitment to values. I believe in the Congress ideology,’ he added.

New Delhi:

Sam Pitroda — Congress’s overseas unit chief who is back in saddle after a seven-week break — today stood by his statement about diversity among Indians that were seen as racist, but admitted that he could have put it better. “It is not about words but about the meaning… but maybe I could have done a better job,” he told NDTV in an exclusive interview.  And about the row that followed that comment, he shrugged it off.

“I have to run my life. They can twist the fact that I live in Chicago and why I am talking about India… I would expect civilised conversation, dialogue… but that is lost… People are not interested in the substance of a conversation, they are interested in the form of the conversation,” he said.

Mr Pitroda had stepped down from the post in May after his two consecutive statements sparked huge controversies. He was reinstated yesterday.

In an exclusive interview with The Statesman in early May, Mr Pitroda had described India as a “diverse country… where people on East look like the Chinese, people on West look like Arabs, people in the North look like maybe White and people in South look like Africans”.

It had triggered a huge uproar in the run-up to the election, coming on the heels of his comments about inheritance tax.

Barely two weeks before, Mr Pitroda had cited inheritance tax as an example of “new policies that can “help prevent concentration of wealth” which should be discussed and debated. The Congress, he had added, always helps people at the bottom of the economic pyramid.

His remarks were interpreted as advocacy of inheritance tax in India and Prime Minister Narendra Modi had remarked that if elected, the Congress would redistribute the personal wealth of people among “infiltrators” and won’t even spare the mangalsutras of women.

Mr Pitroda today said no one had questioned him about what he meant before jumping to conclusions. “When I made the comment on inheritance tax, I did not mean that I’m proposing inheritance tax. How do you come to that conclusion?”

His comments about diversity were also twisted, he said.

“Next time I said something about – my way of saying how diverse we are, people thought it was racial. There is nothing racial in saying that we came from Africa. It is a fact of life. And who says that being black is racist? No. I am dark. My wife is not very dark. So what?” he said.

“We tend to make issues out of nothing. And that’s the reason I decided that is better to take myself out,” he added. That was the way to bring back the focus on issues that matter, he said.

New Delhi:

Congress’s Sam Pitroda — who stepped down from the post of its overseas unit chief in the run-up to the general election — is back in the saddle again. That he would be reinstated, was said by Prime Minister Narendra Modi in an interview to NDTV.

“I sometimes think the party (the Congress), in a well-planned way, does this. I don’t think they (the members) do this on their own. Then they are kept out of the party for a  few days. Then they come back in the mainstream again,” PM Modi had said in May.

“This is what they did with their guru in America. He has resigned. Now he will be brought back again after a while… It is their well-considered strategy to create confusion in the country, change the atmosphere, create new issues, compel their opponents to react on these issues,” he had told NDTV.

Sam Pitroda had stepped down from the post after his two consecutive statements sparked huge controversies.

In an exclusive interview with The Statesman in early May, the Congress leader had described India as a “… diverse country… where people on East look like the Chinese, people on West look like Arabs, people in the North look like maybe White and people in South look like Africans.”

It had triggered allegations of racism and colonial mindset. With the controversy of Mr Pitroda’s earlier comments yet to die down The Congress found itself firefighting on multiple fronts, the Congress found itself firefighting on multiple fronts.

In April, Mr PItroda had made a remark on inheritance tax in the US that had drawn a fierce attack from the BJP.

He had cited inheritance tax as an example of “new policies that can “help prevent concentration of wealth” which should be discussed and debated. The Congress, he had added, always helps people at the bottom of the economic pyramid.

PM Modi had remarked that if elected, the Congress would redistribute the personal wealth of people among “infiltrators” and won’t even spare the mangalsutras of women.

Having stepped down from the post after two of his remarks stirred up a huge political row, putting the Congress on the backfoot during the all-important Lok Sabha elections, Sam Pitroda has been reappointed the chairman of the Indian Overseas Congress. 

The reappointment was announced by the party in a statement on Wednesday.

Towards the end of April, when the first phase of the elections was over and the Congress was fending off a charge – led by Prime Minister Narendra Modi – that its manifesto had spoken of wealth redistribution, Mr Pitroda had added fuel to the fire by speaking about an inheritance tax.

Criticising the Prime Minister for claiming that the party’s manifesto spoke of snatching gold and women’s mangalsutras (a sacred ornament in Hinduism symbolising that a woman is married), Mr Pitroda, while speaking to ANI, ended up talking about the inheritance tax. 

“In America, there is an inheritance tax. If one has $100 million worth of wealth and when he dies he can only transfer probably 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,” he had said. 

The BJP latched on to this statement and claimed that the Congress’ hidden designs had been exposed.

Addressing a rally, PM Modi had said, “The advisor of the prince of the Congress royal family had earlier said that the middle class should be taxed more. Now they have gone further ahead. Now the  Congress is saying that it will impose an Inheritance Tax and tax the inheritance received by people from their parents. The wealth you accumulate with your hard work won’t pass down to your children. The Congress’s hand will snatch it.”

Even as the Congress was dealing with the fallout of that statement, Mr Pitroda ended up making another controversial comment in early May, which led to allegations of the party being divisive.

In an exclusive interview with The Statesman, the Congress leader had described India as a “… diverse country… where people on East look like Chinese, people on West look like Arab, people in the North look like maybe White and people in South look like Africa.” 

As the controversy over this remark snowballed, the Congress announced on May 8 that Mr Pitroda had decided to step down from the post. 

“Mr Sam Pitroda has decided to step down as Chairman of the Indian Overseas Congress of his own accord. The Congress President has accepted his decision,” senior Congress leader Jairam Ramesh had posted on X.

The Lok Sabha elections were held between April 19 and June 1. The Congress had managed to win 99 seats on its own, improving its tally from 52 in 2019, and the INDIA alliance clinched 232 seats. The BJP fell short of a majority, winning in 240 constituencies, but the NDA was comfortably over the 272 mark, ending up with a figure of 293. 

New Delhi:

Congress leader Adhir Ranjan Chowdhury’s “we have Proto Australoids… Mongoloid… Negrito (in India)” comment – referring to now-outdated racial and anthropological groupings of humankind – triggered a fresh row Thursday, a day after Sam Pitroda’s “North Indians look like white (people)… South Indians look like Africans” remark spawned a furious pushback from the BJP and accusations of disrespecting Indians based on skin colour.

“We have Proto Australoids, Mongoloids, (and) Negrito class of people. Hai to hai (It is how it is) … in the demography of our country, regional features are different. What someone said (referring obliquely to Mr Pitroda’s comment) is his opinion…” Mr Chowdhury said.”But it is true some people are white…and some are dark.”

Mr Chowdhury’s statement – seen as an attempt to defend Mr Pitroda after his racist remarks – has been slammed by the BJP, with Shehzad Poonawalla also dredging up the row over the Bengal Congress boss’ comments about President Droupadi Murmu in July 2022. 

READ | Congress Leader’s Written Apology To President For ‘Rashtrapatni’ Remark

“It shows the words are from Sam Pitroda and the soch (way of thinking) is of the Congress. Calling Indians ‘Negrito’… Is this justifying comments by Uncle Sam (a jibe at the United States-based Mr Pitroda)? Is this why they did not sack him? Will they sack Adhir… who in the past said ‘rashtrapatni’ for Droupadi Murmuji?” Mr Poonawala raged.

Adhir Ranjan crosses the limits

In defending Sam Pitroda he calls Indians (Negro or Negrito/Negrita )
Safed, Kala !

Both words are offensive https://t.co/YSzE7DaJAX

It shows that the words are Sam Pitroda but soch is of Congress

Calling Indians as Chinese / African/… pic.twitter.com/9v0Uf0ChEd

— Shehzad Jai Hind (Modi Ka Parivar) (@Shehzad_Ind) May 9, 2024

The Congress has not yet responded to Mr Chowdhury’s comment.

On Wednesday an excerpt from Mr Pitroda’s interview with The Statesman was circulated online, in which he described India as a “… diverse country… where people in the East look like Chinese… people in the North look like, maybe, white (people) and people in the South look like Africans”.

READ | “South Indians Look Like Africans…”: Sam Pitroda Embarrasses Congress Again

The Congress distanced itself from the remark – which followed another equally controversial comment by Mr Pitroda about inheritance taxes – but not before it drew a furious response from Prime Minister Narendra Modi, who said the country “won’t tolerate disrespect on the basis of the colour of skin”.

READ | PM’s Retort To Sam Pitroda’s Racist Flub, BJP Leaders’ ‘Look Indian’ Posts

Repeating his “shehzade (prince)” barb for Mr Gandhi, he said, “Shehzade, you will have to answer. The country will not tolerate the disrespect of our countrymen on the basis of the colour of skin…”

READ | Sam Pitroda Quits After Landing Congress In New Mess Over Racist Remark

Hours after the comment Mr Pitroda quit as chief of the Congress’ overseas unit. Party comms boss Jairam Ramesh said the resignation was “of his (Mr Pitroda’s) own accord”.

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New Delhi:

Senior Congress leader Sam Pitroda – whose comment last month about an inheritance tax in the United States sparked a massive fight with the ruling Bharatiya Janata Party – has triggered another row in his attempt to make a pitch for national unity. 

In an exclusive interview with The Statesman, Mr Pitroda described India as a “… diverse country… where people on East look like Chinese, people on West look like Arab, people on North look like maybe White and people in South look like Africa”. 

The remark has been slammed by senior BJP leaders, including Manipur Chief Minister N Biren Singh and his Assam counterpart,  Himanta Biswa Sarma, who posted on X, ” Sam bhai, I am from the northeast, and I look like an Indian. We are a diverse country – we may look different, but we are all one.”

“Hamare desh ke bare mein thoda to samajh lo! (Please understand at least something about our country)” the senior BJP leader hit back at Mr Pitroda.

Sam bhai, I am from the North East and I look like an Indian. We are a diverse country – we may look different but we are all one.

Hamare desh ke bare mein thoda to samajh lo! https://t.co/eXairi0n1n

— Himanta Biswa Sarma (Modi Ka Parivar) (@himantabiswa) May 8, 2024

Actor-politician Kangana Ranaut, the BJP’s Lok Sabha candidate from Mandi in Himachal Pradesh, also responded, accusing Mr Pitroda of making “racist” and “divisive” comments. 

“Sam Pitroda is Rahul Gandhi’s mentor. Listen to his racist and divisive jibes for Indians. Their whole (the Congress’) ideology is about divide and rule. It’s sickening to call fellow Indians Chinese and African. Shame on Congress!” she said.

BJP leader Shehzad Poonawalla called Mr Pitroda’s comment “shocking, despicable and disgusting”.

“He is the mentor of Rahul Gandhi. It is the word, spirit, vocabulary and ideology of Rahul Gandhi… First, they divided on the basis of caste, religion and language. Now, they are dividing Indian vs. Indian. And to make a comment like Indians are like Chinese, isn’t it a racist comment? Isn’t it insulting and objectionable ? It shows ‘Congress ki Mohabbat ki Dukan actually has ‘nafrat‘ and ‘racism ka saman‘…”

#WATCH | Delhi: On Chairman of Indian Overseas Congress, Sam Pitroda’s controversial “People in East look like Chinese, in South look like Africans…” remark, BJP leader Shehzad Poonawalla says, “This is a shocking, despicable and disgusting comment made by Sam Pitroda. He is… pic.twitter.com/jQ9tMRAkyY

— ANI (@ANI) May 8, 2024

Mr Pitroda was responding to a question about what the Congress has tried to make one of the fundamental issues of the 2024 Lok Sabha election – that the BJP, should it win this poll, will look to alter the basic nature of the country’s socio-economic fabric, including by changing the Constitution.

Mr Pitroda referred to a “really divided country today based on ideas of India”, and said, “It is not a question of who is right or wrong… but a question of what you believe in.”

“… there is another view that says our founding fathers fought the British Raj not for a Hindu nation but for a secular nation. Pakistan decided to make a nation based on religion… you can see how that is going. We are a shining example of democracy in the world. We have survived 70-75 years in a very happy environment, leaving aside a few fights here and there,” he said.

“… we are all brothers and sisters, we respect different languages, religions, customs, and food. As a Gujarati, I love dosa. So, if I go to Tamil Nadu and speak the local language, it is ok. I am still at home… that is my India, rooted in democracy, freedom, liberty, and fraternity,” he declared. 

This view, Mr Pitroda declared, “is being challenged by one that includes the Ram Temple and Ram Navami and the PM going to temples all the time and talking not as a national leader, but that of the BJP”.

This comes days after the BJP ripped into the Congress over Mr Pitroda’s comments over an inheritance tax. 

Mr Pitroda’s comments then came as the Congress fended off a vicious attack by the BJP, which was sparked by Prime Minister Narendra Modi’s remarks about Muslims, and claims of “wealth redistribution… to those who have the most children… to infiltrators”. Mr Pitroda then, speaking to news agency ANI, had said the Congress always helps people at the bottom of the economic pyramid, and cited the inheritance tax in the United States as an example of “…new policies so concentration of wealth can be prevented”.

READ | Congress In Firefighting Mode Amid Row Over Sam Pitroda’s Remarks

The BJP had hit back fiercely, with several of its leaders taking aim at Mr Pitroda over his comments and allegations of the Congress’ “wealth redistribution” plans, which the party firmly denied. 

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

The Congress, on that occasion, had distanced itself from Mr Pitroda’s comments, with senior communications figure Jairam Ramesh saying, “this does not mean Mr Pitroda’s views always reflect the position of the Indian National Congress”.

Raisen, Madhya Pradesh:

Madhya Pradesh’s former Chief Minister Shivraj Singh Chouhan has taken a jibe at Sam Pitroda, who heads the Congress’s overseas chapter over his remarks on inheritance tax and said that India’s culture, tradition, and moral values are not of America.

Addressing a public rally in Raisen, Shivraj Singh Chouhan slammed Sam Pitroda for comparing India with America and said, “In a country like America, there is a provision that after death, the government (US) takes away 55% of the property. However, Sam Pitroda, this is not America, it’s India. India’s culture, tradition, and moral values are not of America. India is India.”

Earlier, emphasising the need for policy toward wealth redistribution, Sam Pitroda spoke about the concept of inheritance tax prevailing in America and said these are issues that will need to be discussed.

“In America, there is an inheritance tax. If one has 100 million USD worth of wealth and when he dies he can only transfer probably 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,” Sam Pitroda had said.

“In India, you don’t have that. If somebody is worth 10 billion and he dies, his children get 10 billion and the public gets nothing…So these are the kinds of issues people will have to debate and discuss. When we talk about redistributing wealth, we are talking about new policies and new programs that are in the interest of the people and not in the interest of the super-rich only,” he had further said.

Criticising Congress, Shivraj Singh Chouhan said, “Be it farmers or the poor people, they also save money so that after their death, they can give something to their children. But the Congress wants to end this tradition.”

Shivraj Chouhan added further, “This inheritance tax was in imposition earlier as well, but due to people’s pressure, Congress abolished it… Maybe Rajiv Gandhi wanted to get the property of Indira Gandhi, and so he abolished it. The party has to make its intention clear before the nation. Congress is not on India’s path. It is on a dangerous path.”

In India, the concept of levying tax on inheritance does not exist as of now. In fact, the Inheritance or Estate Tax was abolished with effect from 1985.

Shivraj Chouhan also slammed the Congress party for conducting caste-based census. “On one hand, they talk about imposing inheritance tax, on the other hand, they talk about caste-based census… In how many parts do you want to divide the nation and society?… There are dangerous intentions lying behind… and those intentions are dividing the country based on caste… The country will never accept this, the people of the nation will never accept this,” he said.
 

(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.