India Inheritance Tax Calculator
India does not have an inheritance tax (estate duty was abolished in 1985). This means assets passed to heirs are completely tax-free. However, any income generated by inherited assets after transfer is taxable in the hands of the recipient. Gift tax also does not apply to gifts from relatives or gifts up to ₹50,000 per year from non-relatives.
Why India Has No Inheritance Tax
India's inheritance tax (estate duty) was abolished in 1985 to simplify wealth transfer and reduce the cost of estate administration. Unlike the UK (40%), US (18-40%), Japan (10-55%), and South Korea (10-50%), India imposes no tax on inherited wealth. However, note that any income earned from inherited assets (rent, dividends, interest) is taxable. Gifts from relatives are always tax-free, and gifts from non-relatives up to ₹50,000 per year are also exempt.
India Inheritance Tax Calculator 2026 — No Inheritance Tax in India
India abolished inheritance tax in 1985. See how much you save compared to other countries like UK (40%), US (18-40%), Japan (10-55%), South Korea (10-50%).
~$600,000 / £475,000 / ￥82,500,000 / ₩800,000,000
Inheritance Tax Comparison: India vs Other Countries
On an estate valued at ₹5,00,00,000 ($600,000)
India
UK
US
Japan
South Korea
Inheritance Tax in India — Educational Note
India does not levy any inheritance tax, estate tax, or death duty. The Estate Duty Act was repealed in 1985. All assets inherited are tax-free in the hands of the recipient under Section 56 of the Income Tax Act (subject to certain conditions for distant relatives).
However, any income generated from inherited assets (rent, dividends, interest, capital gains) is taxable in the hands of the heir as per normal income tax rules.