How do you transfer inherited property in India?
Asked by: Palma Ledner | Last update: November 15, 2025Score: 4.9/5 (52 votes)
Once the legal heirship certificate is obtained, the transfer of the inherited property requires the execution of appropriate documents. These may include a sale deed, gift deed, or relinquishment deed, depending on the nature of the transfer.
Can a US citizen sell inherited property in India?
Selling Inherited Property
NRIs can sell inherited property to an Indian resident without RBI permission, but selling to a non-resident requires RBI approval. Capital gains tax may apply based on the property's purchase date.
How do you transfer ownership of a property after death in India?
If the deceased did not leave a will, the property is transferred according to the laws of intestate succession. In India, this typically involves the legal heirs (spouse, children, etc.) who will have to claim the property through a legal process.
How to bring inheritance from India to the USA?
You need to write the inheritance to the IRS and submit Form 3520, with your annual tax return details. According to U.S. regulations, if you are gaining or making a profit from the inherited property, including capital gains, dividends, or interests, you will need to pay tax on such inherited income.
What are the rules for inherited property in India?
The property inherited by a Hindu from his father's father and father's is ancestral property. Property inherited by other relations is his separate property. The essential feature of ancestral property is that if that person inheriting it has sons, grandsons or great grandsons, they become joint owners with him.
What is the best way to sell Inherited Property? | NRI & Inherited Property FAQ
How to transfer inherited property in India?
- Death certificate of the deceased: This document proves the demise of the property owner.
- Birth certificate of the legal heirs: This document helps establish the heir's identity.
- Ration card copy (if applicable)
- Bank statement of the legal heirs.
What is the new inheritance law in India?
The exact proportions of distribution are determined by the personal laws and their specific provisions. For example - succession as per Hindu Succession Act for no-Will situation, wealth shall be Firstly distributed of a male person to his mother (if living), wife and all sons, daughters (including married) equally.
How to bring money from India to the USA after selling property?
The CA will issue certificate information or “Form 15CB” which is also downloadable from the Indian government tax website. The form is basically a certificate that the money to be sent abroad has been acquired from legal means like the sale of a property. It also vouches that all taxes due have been paid.
Can OCI sell inherited property in India?
Yes, OCIs can sell inherited property in India. According to Indian law, OCIs have similar property rights to NRIs in India; they can dispose of or sell the inherited property after going through the legal formalities and adhering to the taxation rules.
How much money can my parents send from India to USA as gift?
The annual limit for remittances under LRS is based on your residency. If you and your spouse are both Indian residents, you can collectively send up to INR 14 lakh per financial year. As per the RBI, Under the Liberalized Remittances Scheme (LRS), every Indian resident can send up to USD 2,50,000 in a financial year.
What is the time limit for property transfer after death in India?
What is the time limit for property transfer after death? According to the Limitation Act of 1963, legal heirs must file a claim for the property within 90 days of the father's death. However, while the claim must be made within 90 days, the settlement and property transfer can extend for long, taking several months.
Can property be transferred without probate in India?
Immovable properties cannot be transferred based solely on a Will without obtaining probate. The executor''''s authority to transfer property is contingent upon the grant of probate [Mohamed Salman Noorani VS Radhika Bhargava - Bombay][Nagubai Ammal VS B. Snama Rao - Supreme Court].
Who is the owner of the property after father death in India?
After the death of your father, if he died without a Will, then the property will devolve amongst all legal heir. So in case your father did not have a Will, you, your mother and other siblings will be legal heir and the house will devolve amongst four. Both the procedure can be done during the lifetime of your mother.
Can I sell my property in India from USA?
Generally, NRIs can sell residential and commercial properties without much restriction. However, selling agricultural land, farmhouses, or plantation property is only permitted under specific conditions, usually requiring prior approval from the Reserve Bank of India (RBI).
Do all heirs have to agree to sell property in India?
Selling ancestral property without the consent of all legal heirs is prohibited under Indian law. Since it's jointly owned by all coparceners, any transaction requires unanimous approval to ensure fairness.
Do I have to pay tax on inherited property in India?
Currently, India does not have to impose any tax on the inheritance of a property or asset to legal heirs, nominees, or beneficiaries. However, tax laws in India do apply to any income gained from inherited assets or property.
Can you inherit property in India if you are a US citizen?
Yes, foreign citizens can inherit property in india. Though they have no right to acquire land meant for farming purposes directly; such people are allowed to do so through inheritance procedures. But then there might be limitations imposed on selling this type of property.
Can OCI live in India forever?
Overseas Citizenship of India (OCI) is a form of permanent residency available to people of Indian origin which allows them to live and work in India indefinitely.
Can inherited property be gifted in India?
No. An ancestral property can not be gifted. "A Hindu father or any other managing member of a HUF has the power to make a gift of the ancestral property only for a pious purpose, that is, for charitable and/or religious purposes.
How to transfer a large amount of money from India to the USA?
Bank Transfer
Bank transfers are usually the cheapest option when it comes to funding your international money transfer with Wise. Bank transfers can be slower than debit or credit cards, but they usually give you the best value for your money. Read more how to use bank transfers as a payment option.
How much money can be transferred from India to the USA without tax?
Non-Resident Indians (NRIs) can repatriate a maximum of $1 million without paying any tax on money transfers from India to the USA.
Is property sold in India taxable in USA?
If you're a US citizen or Green Card holder and you sell property in India, you must report the sale to the IRS under capital gains. The US taxes your worldwide income, which means that any taxable event, like selling property, has to be reported to the IRS, even if it happened in India.
How much inheritance is tax free in India?
At present, India has no tax on inheritance. Hence, if you are inheriting any property or assets, you will not have to pay any taxes. However, if you are planning to sell off the inherited property, you must make a declaration of inheritance on your tax returns.
How to transfer property after death of parent without will in India?
Heirs must file a petition in the civil court where the deceased lived. This petition should include details about the deceased, the heirs, and the assets involved. The court will then publish a notice in a local newspaper inviting any objections to issuing the certificate.
Can inherited property be willed in India?
Ancestral property can be passed on through a will or a gift. However, the person who is transferring (through will or gift) can only pass on his share in the said property. Ancestral property, once divided, by way of partition or even as bequest through will or a gift, loses its character as ancestral property.