What are the legal procedures for NRIs to inherit property in India, and what documentation is required?

Answered by

A Agarwalla & Co.

Published At July 9, 2024

Answer

Inheriting property in India as a Non-Resident Indian (NRI) involves specific legal procedures and required documentation. The process begins with establishing legal heirship, typically through obtaining a legal heir certificate or succession certificate from the competent court. This certificate validates the heir’s entitlement to the deceased’s estate​​.

If the deceased left a will, it must be probated, verifying its legality. Without a will, letters of administration from the court are necessary. The inherited property must then be registered in the heir’s name at the sub-registrar’s office, involving registration fees and various documents​​. Compliance with the Foreign Exchange Management Act (FEMA) regulations is crucial, particularly if the property is to be sold or repatriated​.

Essential documents include the original death certificate, identification documents like a passport and PAN card, the will or succession certificate, and original property documents. A legal heir certificate is also required to establish the relationship between the deceased and the inheritor​.

Consulting a real estate attorney in India is advisable to navigate these complexities and ensure all documentation is in order. Additionally, while there is no inheritance tax in India, selling the inherited property may attract capital gains tax. NRIs can benefit from indexation for long-term capital gains to reduce the taxable amount. Engaging a real estate attorney in India ensures compliance with all legal requirements and smooth processing of NRI property inheritance​.