Nikhil Kamath, the co‑founder of India’s largest stock‑broker Zerodha, told an audience at the NDTV World Summit 2026 that the government’s proposal to impose an inheritance tax is "not the worst idea" he could imagine—an assertion that surprised many investors in the room.
He explained that taxing wealth transfer between generations should avoid treating unrealised gains as taxable income, proposing mechanisms that would not force heirs to liquidate assets to pay tax. Kamath also warned that without intervention, wage growth will lag behind asset‑price inflation, keeping the Gini coefficient high.
Kamath’s own portfolio—ranging from food‑tech Licious to electric‑scooter maker Ather—illustrates the kind of businesses that could benefit from a more equitable tax structure, and he noted that his earlier comments on the subject were met with online backlash.
The finance ministry has already earmarked the inheritance‑tax discussion for the next revision of the Income Tax Bill, scheduled for a formal review in June 2026. Kamath’s insights are expected to influence that draft, potentially reshaping how wealth transfer is taxed under the new law.
Analysts say the policy shift could trigger a broader debate on wealth inequality, but they also warn that any tax reform will need to balance the interests of high‑net‑worth investors with the need for revenue and social equity.
Meanwhile, a family that recently lost a patriarch in the Delhi suburbs is watching the proceedings closely, hoping that a fair inheritance tax could provide a smoother transfer of assets without crippling future generations.