INDIA Law and Practice Contributed by: Roshnek Dhalla, Bijal Ajinkya, Moin Ladha and Shailendra Bhandare, Khaitan & Co
• transfer of artwork into a trust that is created solely for the benefit of “relatives”; • receipt of any artwork from any person (even if non-relative) under a will or inheritance; and • donation of artwork to any charitable organisation holding a valid registration under the Indian IT Act. 10.4 Artworks Exempt from Inheritance/ Donation Taxes While India does not have any inheritance taxes at present, it did have an estate duty in force until 1985. Under the erstwhile estate duty law of India, certain artworks were exempted from the levy of estate duty: • such works of art that are of national, scientific or historical interest, which are retained in the family and dealt with only in accordance with prescribed conditions or are donated to the government or any public institution; and • such works of art (which may not satisfy the condi - tions in the preceding point) that are not intended for sale and are dealt with by the family only in accordance with prescribed conditions.
Even though India does not currently impose any inheritance tax or estate duty, its re-introduction is a topic of constant discussion and debate. As recently as 2024, in the run-up to the general elections, the discussions surrounding any potential re-introduction of estate duty in India had become relevant. While the current government denied any intention to introduce such a law, there are often discussions regarding its re-introduction as a measure to facilitate more equi - table distribution of wealth. 10.5 Trusts Indian trust law does not impose any restriction on placing artworks in a trust; however, certain legal, tax and stamp duty implications may need to be borne in mind depending on the nature of the trust, and certain principal points such as whether the ultimate benefi - ciaries are merely the relatives of the settlor or the public at large, etc. No fiscal penalties are associated with such an arrangement where artwork is housed in a trust.
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