Perguntas frequentes

Is any asset / property acquired by way of Inheritance subject to Tax in India?

No, currently there is no Inheritance / Estate tax applicable in India. However, an NRI shall also have to keep in mind the tax implications and reporting requirements of inheritance in his / her country of Residence.



Whether an NRI can acquire property by way of Inheritance?

Any person, whether or not resident / citizen of India is eligible to receive property by way of Inheritance. However, Transfer / Holding of the said property shall be subject to exchange control regulations in India.



If an immovable property is received by way of Inheritance by an NRI, can he / she repatriate the sale proceeds?

Yes, an NRI is eligible to repatriate sale proceeds of an immovable property inherited from a person resident in India subject to certain conditions, payment of taxes and upto the monetary limits specified by RBI.



In case any income is earned from a property acquired by way of Inheritance, is it subject to Tax in India?

Yes, income earned from property acquired by way of Inheritance is taxed in India as under:

  • Upto the date of death - taxed in the hands of the deceased. However, the same would be leviable and recoverable from the legal representatives of the deceased in a like manner and to the same extent as the deceased (liability restricted upto the value of property inherited).
  • After the date of death - taxed in the hands of beneficiaries / executor(s) in their individual capacity.



How will the asset / property be inherited, if a person passes away without a Will?

When a person passes away without a Will, the provisions of the Succession law (as specified in the above Flowchart) shall have to be followed to distribute the deceased person's property among the legal heirs. The rules of succession will determine who the heirs of a deceased are and what would their share be in the Inheritance. Further, an NRI may also have to obtain a Succession Certificate to substantiate that he / she is a legal heir as per the provisions of the Succession Law.