Say no to Inheritance Tax
The news report ‘Prime Minister tears into Congress over alleged plans to tax inherited wealth’ (April 25) highlights vicious debate spurred on Sam Pitroda's suggestion on US model of inheritance tax at 45-50 per cent.
Sam Pitroda was a prominent policy maker on various projects of the Congress government for three decades from 1980 to 2009 but unfortunately he misunderstood the social fabric, Inheritance laws, business ecosystem and direct tax structure of the country.
Estate duty was abolished in 1985 by the Congress government and Wealth Tax was abolished in 2016 by the NDA government.
Therefore, Congress should have nipped the issue of inheritance tax in the bud.
There are provisions of inheritance in the Hindu Undivided families (HUF) in the Income Tax Act and Trust laws.
In business families the inherited assets continue in the running business and industrial entities of the inheritors.
By way of charging the inheritance tax, the social fabric and economy as a whole will badly suer.
Sam Pitroda's suggestion is unthoughtful, untimely and regressive.
At the end of the second phase of polling, Congress must disown the
idea of inheritance tax.
New Delhi
Apropos ‘Small Finance Banks' universal' conundrum’ (April 25), the writers bring to the fore that Small Finance Banks are serving the underserved markets.
They have fostered financial inclusion with deep rural coverage with augmented access to micro finance and well balanced geographical coverage.
But their risk management policies need to be tightened tuning them to prudential lending with good recovery process.
Above all consolidating them with other universal banks may ensure risk reduction.
But it will lose its tag as a saviour of