Archive · 28 Sep 2026
Sabeer Bhatia Calls for 55% Inheritance Tax in India
Sabeer Bhatia, who helped start Hotmail, suggested that India consider a 55% tax on inherited wealth.
Inherited wealth is money or property that someone receives after a family member dies.
Bhatia said people should have opportunities because of what they build themselves.
He argued that parents should give children education and good values instead of large amounts of wealth.
Some people disagreed and said parents should be able to pass what they built to their children.
Other users supported limiting inheritance so people could begin with more equal opportunities.
India does not currently have an inheritance tax.
India once had an estate duty, but it was abolished in 1985.
That earlier tax had reached a top rate of 85%.
Hotmail co-founder Sabeer Bhatia proposed a 55% inheritance tax for India.
Bhatia said opportunities should depend on what people build, not what they inherit.
India currently has no inheritance tax, but previously imposed estate duty until 1985.
The former estate duty had a top rate of 85% and applied above a ₹1.5 lakh exemption.
Social-media users split between criticizing the proposal and supporting limits on inherited wealth.
- Who
- Hotmail co-founder Sabeer Bhatia and users responding to his post.
- What
- Bhatia proposed a 55% inheritance tax in India and explained why he supports it.
- When
- Bhatia made the proposal in a post on X on Saturday; India’s earlier estate duty ended in 1985.
- Where
- The proposal concerns India and was made on X.
- Why
- Bhatia said the tax could help make India more competitive and ensure opportunity is based on personal achievement rather than inheritance.
Supporters of Inheritance Limits
Critics of Inheritance Tax
Equal opportunity
Supporters of Inheritance Limits
Supporters say inherited wealth should be limited so people can begin from a more equal position and opportunities depend more on personal effort.
Critics of Inheritance Tax
Critics question what problem the tax would solve and say parents should be able to pass wealth they built to their children.
What parents should provide
Supporters of Inheritance Limits
Bhatia says parents should provide tools such as education and good values, rather than wealth that could weaken their children’s independence.
Critics of Inheritance Tax
Critics argue that parents who worked to build assets should be allowed to give those assets to their children.
Possible tax design
Supporters of Inheritance Limits
One supporter suggested allowing only certain types of inheritance, such as non-liquid assets, or limiting the amount transferred.
Critics of Inheritance Tax
Opponents of the proposal object to the government taking a large share of family wealth.
- Proposed tax
- 55% inheritance tax
- Current Indian policy
- India currently has no inheritance tax.
- Former tax
- The Estate Duty Act, 1953 imposed tax on property transferred after death.
- Former top rate
- India’s estate duty rate reached 85%.
- Former exemption threshold
- The earlier tax applied to estate value above ₹1.5 lakh.
- Abolition
- Estate duty was abolished in 1985 during Rajiv Gandhi’s tenure as prime minister.
- Hotmail acquisition
- Microsoft acquired Hotmail in 1997 in a deal reportedly valued at $400 million.