Yes, Non-Resident Indians (NRIs) can sell inherited property in India. However, there are several legal and tax considerations that must be addressed to ensure a smooth transaction.

Firstly, NRIs must establish clear ownership of the inherited property. This involves obtaining all necessary documents such as the title deed, succession certificate (if there is no will), and a No Objection Certificate (NOC) from other legal heirs, if applicable​.

Once ownership is established, the NRI can proceed with the sale. The sale of inherited property is subject to capital gains tax. Long-term capital gains (property held for more than two years) are taxed at 20% plus surcharge and cess, while short-term gains (property held for less than two years) are taxed as per the applicable income tax slab rates​​. The buyer is required to deduct Tax Deducted at Source (TDS) at 20% on long-term capital gains and 30% on short-term gains​.

Repatriating the sale proceeds of inherited property is subject to regulations set by the Reserve Bank of India (RBI). NRIs can remit up to USD 1 million per financial year from the sale proceeds. For amounts exceeding this limit, repatriation must be carried out over subsequent years​​.

Given the complexity of these transactions, it is advisable for NRIs to seek assistance from a property litigation lawyer India who can provide expert guidance on legal, and procedural requirements.​