A video of Nikhil Kamath, co-founder of Zerodha, expressing his support for inheritance tax as a tool for wealth distribution to the poorer people went viral on April 24.

Kamath made the comments in a conversation the Mint in 2022. An earlier version of this article had reported that the video was from April 24. CNBC-TV18 regrets the error.

The reason for Kamath’s video resurfacing and going viral is the raging debate over inheritance tax, and other populist measures, at the height of the electoral battle between the incumbent government led by the Bharatiya Janata Party (BJP) and Prime Minister Narendra Modi on one hand, and its rival Indian National Congress on the other.

“When predicated wealth transfers from one generation to another, there has to be a filter so that a part of it can be redistributed. There is plenty of precedence to inheritance tax,” Kamath said in a conversation with Mint.

What is Inheritance Tax?

Inheritance tax, a levy imposed on the transfer of assets from deceased persons to their beneficiaries, has been implemented in various countries as a means to redistribute wealth and promote economic equality.

The debate over inheritance tax began with Sam Pitroda, Chairman of the Indian Overseas Congress, recommending inheritance tax in India to bridge the rising income and wealth inequality in the world’s largest democracy.

Also Read: Congress in a soup over Sam Pitroda’s ‘inheritance tax’ remark; know who said what

Prime Minister Modi alleged “dangerous intentions” behind the idea of inheritance.

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