Inheritance
Advising Non-Resident Indians (NRIs) on the tax and Foreign Exchange Management Act (FEMA) implications of inheriting assets in India.
India does not levy inheritance or estate tax, so an NRI inheriting money, property or investments in India does not pay tax at the point of inheritance. However, any subsequent income from the inherited asset — rent, interest, or dividends — is taxable, and capital gains tax applies when the asset is eventually sold. NRIs can generally hold and, subject to conditions, repatriate proceeds from inherited immovable property, including agricultural land inherited from a resident.
What our inheritance advisory covers
Inheriting assets in India as an NRI raises questions about holding, taxation on sale, and eventual repatriation.
- Confirming there is no tax at the point of inheritance
- Advising on holding inherited agricultural land or farmhouses as an NRI
- Computing capital gains tax on eventual sale of inherited assets
- Structuring repatriation of sale proceeds under FEMA
- Assisting with transmission of securities and bank accounts
- Coordinating with legal counsel on succession documentation
What this service includes
Helping you manage inherited Indian assets correctly from day one.
Succession Documentation
Coordinating on transmission of property, securities and bank accounts into your name.
Capital Gains Planning
Computing tax due when an inherited asset is eventually sold, using the original owner's cost and holding period.
Special Asset Categories
Advising on holding inherited agricultural land, plantation property or farmhouses as an NRI.
Repatriation of Proceeds
Structuring the repatriation of sale proceeds from inherited property within FEMA limits.
Our process
From initial consultation to completion.
Asset Inventory
Identifying all inherited assets — property, securities, bank deposits — and their current status.
Transmission Support
Coordinating documentation to transfer title or ownership into the NRI's name.
Tax Position Review
Establishing cost of acquisition and holding period inherited from the original owner for future capital gains computation.
Ongoing Compliance
Advising on tax on income from the asset, and on sale and repatriation when the time comes.
Why inheritance planning matters for NRIs
What sets our approach apart.
No inheritance tax, but income tax still applies
While inheriting an asset itself is not taxed, rental income, interest, or dividends from it are taxable from the date of inheritance.
Cost basis carries over
For capital gains purposes, the inherited asset's cost and holding period is taken from the original owner, which materially affects the tax on eventual sale.
Repatriation has its own rules
Sale proceeds of inherited property follow the repatriation limits and certification requirements applicable to NRO accounts.
Inheritance questions answered
What people ask before engaging us.
