The saga of Congress's corruption and prioritizing family over the country seems never-ending. Recently, Sam Pitroda, Chairman of the Indian Overseas Congress and advisor to Rahul Gandhi sparked controversy by suggesting an inheritance tax similar to the one in the United States for India. This suggestion reignited a debate that began 39 years ago when the Estate Duty tax was abolished in 1985. According to Pitroda, under this proposed tax system, the government would claim more than half of a citizen's wealth after they pass away, leaving only a portion for their family.
PM Modi addresses a rally in Chhattisgarh (Narendra Modi Photo) LINK
The saga of Congress's corruption and prioritizing family over the country seems never-ending. Recently, Sam Pitroda, Chairman of the Indian Overseas Congress and advisor to Rahul Gandhi sparked controversy by suggesting an inheritance tax similar to the one in the United States for India. This suggestion reignited a debate that began 39 years ago when the Estate Duty tax was abolished in 1985. According to Pitroda, under this proposed tax system, the government would claim more than half of a citizen's wealth after they pass away, leaving only a portion for their family.
PM Modi wasted no time in responding to the controversial suggestion. While Addressing the Vijay Sankalp Shankhnaad Maharally in Surguja, Chhattisgarh (YouTube: PM Modi addresses a public meeting in Surguja, Chhattisgarh - Narendra Modi), PM Modi accused the Congress of burdening Indians with excessive taxes and widespread corruption. Modi asserted that the Congress's motto seemed to be Congress ki loot, Zindagi ke sath bhi, Zindagi ke bad bhi ( Translation - Congress will loot, during life and after death too.) The intense backlash against the inheritance tax plan left Congress and Pitroda with no choice but to back away from the controversial idea. As a result, Congress and Pitroda quickly distanced themselves from the controversial idea.
This isn't the first time Congress has floated the idea of an inheritance tax. In fact, the tax was in place in India for over three decades. Under the Estate Duty Act of 1953, inheriting property meant facing a hefty tax, reaching up to 85% of the property's value. Similar to today's income tax slabs, this tax system had different rates for different property values. For properties valued above ₹20 lakh, the tax rate skyrocketed to 85%, essentially resulting in the government claiming almost all of the property after the owner's passing.
Abolishment of Inheritance Tax and its Notable Timing
The timing of the repeal of the Estate Duty Act in 1985 by the Rajiv Gandhi government holds significant intrigue. It's notable that the act was scrapped just weeks before the will of former Prime Minister Indira Gandhi, transferring her properties to her grandchildren, was executed. The decision to abolish the Estate Duty Act, 1953 was made in the very first budget of Rajiv Gandhi's government, with VP Singh serving as the finance minister. Effective from April 1, 1984, the act was repealed. Interestingly, merely a month later, on May 2, 1984, Indira Gandhi's will was made public. In accordance with her will, her estate valued at approximately $175,000, equivalent to over ₹21.50 lakh at that time, was bequeathed to her three grandchildren: Rahul Gandhi, Priyanka Gandhi, and Varun Gandhi. Today, the current value of this estate would exceed ₹4.2 crore.
This highlights how Congress had a knack for bending rules to suit their own interests. They seemed to have a habit of manipulating situations to their advantage, even if it meant changing established laws.
Another Big Revelation in this Matter
According to a report (UPI ARCHIVES. Indira Gandhi left estate to her grandchildren. UPI.) by United Press International (UPI) dated May 2, 1985, the will signed by Indira Gandhi in 1981 revealed intriguing details. While appointing her son Rajiv Gandhi and his wife Sonia Gandhi as executors, she did not allocate any assets to them. Additionally, there was no provision made for her estranged daughter-in-law, Menaka Gandhi. The will came to light after Rajiv Gandhi presented it in court for certification.
In the will, the bulk of Indira Gandhi's estate comprised a farm and a farmhouse under construction in Mehrauli, valued at $98,000. This property was intended to be divided equally among her three grandchildren. Alongside, they were also designated cash, stocks, and bonds totaling approximately $75,000. Moreover, they were granted copyrights to books authored by both Indira Gandhi and Jawaharlal Nehru. Notably, Indira Gandhi's antique articles and personal jewelry, valued at around $2,500, were solely bequeathed to Priyanka Gandhi. However, given that all three beneficiaries were minors at the time, the responsibility of managing the property until they reached adulthood fell upon Rajiv Gandhi and Sonia Gandhi.
For over three decades, India had an inheritance tax in place. However, when it came to the inheritance received by the Gandhi grandchildren, they didn't have to worry about paying any tax. This fortunate exemption was thanks to the sudden abolition of the tax regime, just a month before the will was executed.
The will, which came to light on May 2, 1985, was executed after the Rajiv Gandhi government abolished the Estate Duty Act in its very first budget. A report by UPI from the same day highlighted the significant change, stating,
"Under a finance bill that took effect April 1, all death duties in India have been abolished and no inheritance tax will be assessed on the Gandhi estate."
This episode sheds light on the extent of Congress's greed and corruption. Prime Minister Modi is well aware of the Congress's dubious intentions and the potential harm they could cause to the country if they were to return to power. That's why he wastes no time in exposing Congress's past corruption cases and scams, as well as their sinister motives for the future of the nation.
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