What are the legal procedures for NRIs to transfer inherited property in India?

Answered by

A Agarwalla & Co.

Published At June 20, 2024

Answer

To transfer inherited property in India, NRIs must follow several legal procedures. Here’s a step-by-step guide:

  • Obtain a Legal Heirship Certificate: This certificate establishes the rightful heirs of the property. To obtain it, NRIs must submit documents such as death certificates, family tree proofs and affidavits to the local revenue office or court​ ​.
  • Verify and Establish Clear Title: Conduct a thorough title search to ensure the property is free from disputes, claims, or encumbrances.
  • Understand Succession Laws: Succession and inheritance laws in India vary based on religious and personal laws. NRIs should familiarize themselves with the applicable laws, whether it’s the Hindu Succession Act, Muslim Personal Law, or other relevant statutes​​.
  • Partition of Property: If there are multiple legal heirs, the property may need to be partitioned. This process involves dividing the property among heirs as per their respective shares, which requires their consent and agreement​.
  • Gather Necessary Documents: Essential documents include the title deed, succession certificate, encumbrance certificate (proving the property is free from liabilities), and Khata (a revenue document). For selling the property, additional documents like the passport, PAN card, and sale deed are required​​.
  • Pay Applicable Taxes: The transfer of inherited property attracts taxes such as capital gains tax, stamp duty, and registration fees. NRIs must understand these tax implications and may need to seek a certificate for lower TDS deduction if applicable​​.
  • Execute Transfer Documents: Depending on the nature of the transfer (sale, gift, or relinquishment), appropriate legal documents must be executed.

Engaging a property litigation lawyer India can provide valuable guidance throughout the process.