Selling Inherited Property & Legal Heir / Succession Certificates for NRIs (2026)

Inheriting property from abroad

Losing a parent is hard enough without paperwork in another country. The good news is that India places no restriction on NRIs or OCI cardholders inheriting property, and inheritance itself is not taxed in India. The work lies in proving you are the rightful heir, updating land records, and handling tax only when you sell.

Which document do you need?

For immovable property, many states allow mutation on the basis of a legal heir certificate or a registered will without a succession certificate, which is mainly for movable assets. Banks and companies usually need a succession certificate for larger amounts.

Mutation: getting the property into your name

1. Obtain the death certificate and legal heir certificate or probate.
2. Apply to the municipal body (for urban property) or revenue office (for land) for transfer of Khata, Patta or property tax records.
3. Submit identity proof, passport/OCI, the title deed, encumbrance certificate and an affidavit.
4. Other heirs provide no-objection letters or relinquishment deeds.
5. Pay the mutation fee; a notice may be published inviting objections.
6. Receive updated Khata, Patta, 7/12 extract or property card.

FEMA rules on agricultural land

NRIs and OCIs cannot buy agricultural land, plantation property or farmhouses in India. However, they can inherit such property from a person resident in India, or from someone who acquired it legally. Once inherited, the land can be held, and can be sold only to a person resident in India who is an Indian citizen. It cannot be gifted or sold to another NRI or OCI.

• Sale proceeds are credited to the NRO account.
• Repatriation falls within the USD 1 million per financial year limit.
• Some states have land ceiling and tenancy laws that further limit who can buy agricultural land; check state rules.
• Rural agricultural land outside specified municipal limits is not a capital asset, so its sale may be exempt from capital gains tax.

Tax when you sell inherited property

Inheritance is not taxed. When you sell, your cost of acquisition is the cost to the previous owner (for example your parent), and the holding period includes the period your parent held it. If the property was acquired before 1 April 2001, you can use its fair market value on that date as the cost.

Selling and repatriating: checklist

1. Complete mutation and obtain an updated encumbrance certificate.
2. Pay outstanding property taxes and dues.
3. Obtain NOCs from other heirs or a relinquishment deed.
4. Agree sale price and apply for Form 128 (formerly Form 13).
5. Execute sale deed in person or through a Specific PoA.
6. Receive money in NRO; file ITR-2.
7. Repatriate with Forms 145/146 (formerly Forms 15CA/15CB), attaching the will or succession documents.

Also check home-country rules: US persons who inherit from a non-US person over USD 100,000 must report it on Form 3520, and US basis rules may differ from Indian cost rules.