Inheritance tax is also known as estate tax, is levied on the total value of money and property of a deceased person before it is distributed to their legal heirs. The tax is typically calculated based on the value of the assets left behind.

The purpose of inheritance tax is often to redistribute wealth in the society and generate revenue for the government.

In Japan, the inheritance tax rate stands at as high as 55 % , making it one of the highest in the world. South Korea follows closely behind with a rate of 50 %. France imposes an inheritance tax rate of 45 per cent, while both the United Kingdom and the United States have rates of 40 per cent.

It means that if in USA, one has 100 crore dollars worth of wealth and when he/she dies, then he/she can only transfer probably 60 crore to his children and 40 crore is grabbed by the government.

As far as India is concerned, the Estate Duty Act was introduced in India in 1953 to address economic inequality by introducing an estate duty tax which was similar to inheritance tax. This tax had rates as high as up to 85% for estates valued over Rs 20 lakh. It applied to both immovable and movable properties, which were inherited by successors upon an individual’s death.

The tax was abolished in 1985 due to complexity of the law that resulted in litigation and administrative costs. So in India, there is currently no tax on inheritance.

There are differing opinions on this. Some argue that implementing an inheritance tax in India may not be justified because of it's potential impact on family businesses and concerns about double taxation. Businesses may not be incentivized to grow from generations to generations due to high taxes levied on inheritance.

Moreover, it is argued that an inheritance tax is not justified in India because it disincentivises hard work and could take the country backward. It is believed that such a tax would discourage individuals from striving for success and could have adverse effects on national progress. 

Further, it is like double taxation because those who have earned money have already paid a tax on them. And taxing the wealth accumulated again in the hands of those who have inherited them would mean double tax on the same money.

Developed countries may be imposing such tax but there governments are relatively clean and the money collected is actually spent on the people which has led to high social and economic development. In India, due to the prevalence of corruption, even if the money is collected, the chances of it getting spent on real purposed seems little and rather people would find ways to avoid paying taxes, which would make process very complex.  

Social and Economic equality is a must in the country but the measures should be rational and those which facilitate economic growth, not those which lead to demotivation among the individuals in working for the wealth.