Inheritance
Inheritance and Succession Planning in India
By Classic Partner – Chartered Accountants & Advisors
What is Inheritance?
Inheritance refers to the transfer of a deceased person’s wealth, property, and financial assets to their legal heirs or beneficiaries. In India, inheritance and succession are governed by laws that vary depending on the religion of the deceased:
Hindu Succession Act – applies to Hindus, Sikhs, Jains, and Buddhists
Indian Succession Act – applies to Christians, Parsis, and Jews
Muslim Personal Law (Shariat Application Act) – applies to Muslims
Applicability of Succession Laws
| Scenario | Community | Governing Law |
|---|---|---|
| Intestate (No WILL) | Hindu, Sikh, Jain, Buddhist | Hindu Succession Act |
| Intestate (No WILL) | Christian, Parsi, Jew | Indian Succession Act |
| Intestate (No WILL) | Muslim | Muslim Personal Law |
| Testate (With WILL) | All (Except Muslims) | Indian Succession Act |
| Testate (With WILL) | Muslim | Muslim Personal Law |
Can an NRI Inherit Property in India?
Yes. Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can inherit both immovable and movable property in India, subject to FEMA regulations and RBI guidelines.
Taxation on Inherited Property
Inheritance of Property
India does not levy inheritance or estate tax.
However, countries like the US and UK may impose estate duty of up to 40%. NRIs must consider cross-border tax rules.
Income from Inherited Property
Till date of death → Taxable in hands of the deceased (recoverable from legal representatives, limited to value of inherited estate).
After date of death → Taxable in hands of beneficiaries or executors, as per their tax slabs.
WILL and Succession Planning
A WILL is a legal declaration of how a person wishes to distribute their assets after death.
The person making the WILL = Testator
The person inheriting assets = Beneficiary
A WILL can be revised anytime.
It applies only to assets owned at the time of death.
Administration of WILL
Probate – Court process certifying the authenticity of a WILL. Compulsory in Mumbai, Chennai, and Kolkata for Hindu Wills with immovable property.
Letter of Administration – Issued when a person dies without a WILL or no executor is named.
Succession Certificate – For recovery of debts or securities when probate or LoA is not required.
Joint Ownership of Assets
Jointly held assets transfer to legal heirs of the deceased.
Survivorship rights do not override succession rights.
It’s best to draft a WILL, appoint nominees, and ensure clear documentation
Nomination vs Legal Heirship
A Nominee is only a trustee, not the ultimate owner.
The nominee must transfer the asset to the legal heir or WILL beneficiary.
To avoid disputes → Ensure nominee and WILL beneficiary are the same.
For company shares, nominee rights may override heirship as per judicial rulings
Why Choose Classic Partner
At Classic Partner, our expert Chartered Accountants and legal consultants assist both NRIs and residents with:
Drafting Wills & Succession Planning
Inheritance and cross-border tax advisory (including US/UK estate duty planning)
Probate, Succession Certificate & legal compliance
Repatriation of inherited assets and FEMA compliance
Representation before Indian tax and regulatory authorities
Looking for professional guidance on inheritance and succession planning?
Connect with Classic Partner today – your trusted Chartered Accountants for smooth transition of wealth across generations.
