Full formGovernment & Exams
IHTstands forInheritance Tax
Full Form of IHT
What is IHT?
Inheritance Tax (IHT) is a levy imposed on the estate of a deceased person before the assets are transferred to heirs or beneficiaries. It is commonly applied in countries like the United Kingdom, where estates exceeding a certain threshold (currently £325,000) are taxed at 40%. In India, Inheritance Tax was historically known as Estate Duty, which was abolished in 1985. Since then, India has not levied any direct tax on inherited wealth, making IHT a topic of academic and policy debate among economists and tax reformers. The concept appears frequently in Indian competitive examinations such as UPSC Civil Services, where candidates analyse its pros and cons in the context of wealth inequality and revenue generation. IHT is also discussed in banking and finance courses to compare global tax systems. Despite its absence in India, understanding IHT is crucial for students preparing for exams like CA, CFA, and MBA, as it features in international taxation modules. The term is used in economic literature and news articles when debating progressive taxation or comparing tax regimes with developed nations.
IHT का फुल फॉर्म
उत्तराधिकार कर
Example
The UK's IHT threshold remains a topic of debate, while India's abolition of estate duty in 1985 means heirs receive assets without any direct tax liability.
IHT — frequently asked questions
What is the full form of IHT?
The full form of IHT is Inheritance Tax, a tax imposed on the estate of a deceased person before distribution to heirs.
Is IHT applicable in India?
No, India does not currently levy Inheritance Tax. Estate Duty, which served a similar purpose, was abolished in 1985.
What is the difference between IHT and Estate Duty?
Both are taxes on inherited wealth. Estate Duty was the historical name used in India before its abolition, while IHT is the contemporary term used in the UK and other countries.