Abstract

Inheritance tax is a direct tax that is often regarded as the most progressive of the various tax systems in the nation. Inherited property is subject to Inheritance Tax. The assets that are bequeathed to a person from a deceased person are known as inherited property. Inheritance is the process of passing a person's property, titles, debts, rights, and duties to their lawful heirs following their death, either via a Will or by the rules of succession. Under the Estate Duty Act of 1953, it was first implemented in India as Estate Duty. The rate of inheritance tax varies depending on the heir's connection to the descendent and the amount of the property inherited. This tax is not now applied in India since any inherited property obtained through a Will, by way of inheritance, or in anticipation of the payer's death is excluded from Income Tax under Section 56(ii). Various state governments are struggling to pay their employees' wages as a result of the outbreak of Covid-19. The same is true for the Central government. It is the result of a number of factors that have been in play for at least a decade. According to reports, the central government is exploring a variety of methods to deal with the issue. The reinstatement of inheritance tax is one of them. The purpose of this study is to examine whether reintroducing inheritance tax would be advantageous to India, taking into account its social and economic structure, and comparing it to the inheritance tax model used in the United Kingdom.

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