# NRI Inherited Property — Tax, FEMA & Sale

> There is no tax on inheriting property in India. Under FEMA, an NRI can inherit any immovable property — including agricultural land — from a person resident in India. When the NRI sells it, the cost and holding period of the previous owner are used, so the gain is usually long-term and taxed at 12.5% without indexation; the buyer deducts TDS, and sale proceeds can be repatriated up to USD 1 million per financial year after tax.

Practice: NRI Tax Services — https://www.industax.com/services/nri-tax/

The legal steps come first: proving title through the will (probate may be required depending on the city), succession certificate or legal-heir documents, and updating municipal and revenue records (mutation) in the heir's name. Without clean title, sale and repatriation stall.

On sale, Section 54 or 54EC can still save tax if the gain is reinvested in time. We coordinate the title documents, the capital gains computation, the lower-TDS certificate and the remittance forms.

## Key facts

| Item | Detail |
| --- | --- |
| Tax on inheritance | None |
| FEMA | NRIs may inherit any immovable property, including agricultural land |
| On sale | Previous owner's cost and holding period; LTCG 12.5% without indexation |
| TDS | Buyer deducts at 12.5%/30% + surcharge + cess unless certificate |
| Repatriation | Up to USD 1 million per FY from NRO |

## Who needs this

- NRIs who inherited a flat, house, land or agricultural property
- NRI heirs planning to sell and repatriate
- Families dividing inherited property among siblings abroad

## What's included

- Title and mutation document checklist
- Capital gains computation using inherited cost
- Lower-TDS certificate
- Repatriation forms

## Documents

- Death certificate and will / succession documents
- Original title deeds of the deceased
- Mutation records
- Sale agreement (if selling)

## Process

1. **Title** — Inheritance documents and mutation completed.
2. **Tax** — Gain computed and TDS certificate obtained.
3. **Repatriate** — Proceeds remitted after tax.

## FAQs

### Can an NRI inherit agricultural land in India?

Yes. NRIs can inherit any immovable property, including agricultural land, from a person resident in India. Buying agricultural land is not permitted, but inheriting it is.

### Is tax payable when I inherit property?

No. Tax arises only when you sell it.

### What cost is used when I sell inherited property?

The cost to the previous owner who bought it, and their holding period counts towards yours.

## Official sources

- Income Tax e-Filing portal: https://www.incometax.gov.in/
- Reserve Bank of India — FEMA directions: https://www.rbi.org.in/

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Canonical page: https://www.industax.com/services/nri-tax/nri-inherited-property
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.