Sabeer Bhatia, co-founder of the pioneering webmail service Hotmail, has urged India to consider implementing a substantial 55% inheritance tax. Bhatia argued that such a measure is crucial for India to evolve into a "truly competitive nation," emphasizing that opportunities should be earned through individual effort and creation, rather than simply inherited wealth.
The prominent entrepreneur shared his perspective on X (formerly Twitter) on September 26, 2026, stating, "If India wants to become a truly competitive nation, it should consider a 55% inheritance tax. Opportunity should come from what you build-not simply from what you inherit."
Understanding Inheritance Tax
An inheritance tax is levied on the wealth and assets transferred to heirs following a person's death. The structure of this tax can vary significantly by country; some nations tax the entire estate before distribution, while others tax individual beneficiaries on the portion they receive.
To illustrate the impact of a 55% inheritance tax, a hypothetical estate valued at ₹100 crore would incur a tax of ₹55 crore, leaving ₹45 crore for the designated heirs after applying any potential exemptions or specific rules.
India's History with Estate Taxation
Currently, India does not impose an inheritance tax. However, the country previously had a similar levy known as Estate Duty, which was applied to property passing on after an individual's demise. This Estate Duty was ultimately abolished in 1985.
About Sabeer Bhatia
Sabeer Bhatia, born in Chandigarh, India, pursued his higher education in the United States, attending institutions such as BITS Pilani, the California Institute of Technology, and Stanford University, where he earned a master’s degree in electrical engineering.
In 1996, Bhatia, alongside Jack Smith, co-founded Hotmail, which quickly became one of the internet's earliest and most widely adopted web-based email services. Microsoft acquired Hotmail in 1997 for approximately $400 million. Following his success with Hotmail, Bhatia continued his entrepreneurial journey, launching and supporting several other ventures, including Arzoo, Sabse Technologies, AMP Technologies, and more recently, ShowReel in 2021.