Hotmail co-founder Sabeer Bhatia calls for 55% inheritance tax to make India a ‘truly competitive nation’

Hotmail co-founder Sabeer Bhatia has suggested that India should consider a 55% inheritance tax, arguing that opportunities should come from what people build rather than what they inherit.

“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,” Bhatia said in a post on X.

Inheritance tax is a tax on the wealth or assets passed on to heirs after a person’s death. Depending on how a country structures the tax, it can be charged on the estate before assets are transferred or on what the beneficiaries receive.

For instance, under a hypothetical 55% inheritance tax, an estate worth ₹100 crore could face a tax of ₹55 crore, leaving ₹45 crore for the heirs, subject to exemptions and other rules.

India currently does not levy an inheritance tax. The country previously had Estate Duty, which was imposed on property passing after a person’s death, but it was abolished in 1985.

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Who is Sabeer Bhatia?

Bhatia was born in Chandigarh and studied at BITS Pilani before moving to the US. He later graduated from the California Institute of Technology and earned a master’s degree in electrical engineering from Stanford University.

In 1996, Bhatia and Jack Smith launched Hotmail, which became one of the early widely used web-based email services. Microsoft acquired Hotmail in 1997 for a reported $400 million.

After Hotmail, Bhatia went on to launch and back several ventures. These included Arzoo, an online travel company, and Sabse Technologies, a communications-focused company. He also founded AMP Technologies, which worked on cloud-based enterprise software.

In 2021, Bhatia launched ShowReel, a video-based platform aimed at connecting job seekers and employers.