Is inheritance taxed in India?
No. India abolished estate duty in 1985 and has no inheritance tax. Money and property received under a will or by inheritance are also not treated as taxable gifts. This applies whether the heir lives in India or the UK.
Tax arises only later: on income from the inherited asset, such as rent or interest, and on any gain when it is sold. See Exempt Income for NRIs.
Getting the assets into your name.
| Asset | Usually needed |
|---|---|
| Bank accounts and deposits | Death certificate, nomination or will, claim form; larger amounts may need a succession certificate |
| Shares and demat holdings | Transmission request, death certificate, and will or legal heir documents |
| Mutual funds | Transmission request to each fund house, with KYC as an NRI |
| Property | Will with probate where required, or legal heir certificate; then mutation in local records |
| Provident fund, insurance, pension | Claims with nominee or legal heir documents |
If you are an NRI, the bank accounts and investments must be transferred into NRO or other NRI-appropriate accounts. See FEMA rules for NRIs.
What an NRI can inherit.
- Any property, including farmlandNRIs and OCI cardholders can inherit any immovable property from a person resident in India.
- Farmland can only be sold to residentsInherited agricultural land can only be sold to a resident Indian citizen.
- Shares, funds and depositsCan be inherited and held on a non-repatriable basis.
- No approval neededInheritance from a resident does not need RBI approval.
Renting out or selling inherited property.
Rent from an inherited flat is taxable in India and tenants must deduct TDS. If you sell, the gain is worked out using the previous owner's cost and holding period, so most inherited property is long-term and taxed at 12.5%. For property bought before 1 April 2001, the value on that date can be used as the cost.
See Capital Gain on Sale and Lower Tax Deduction Certificate to limit TDS when selling.
The UK inheritance tax side.
The UK charges inheritance tax on the estate of the person who died, not on the heir. If the deceased lived in India and was not a long-term UK resident, Indian assets are generally outside UK inheritance tax.
For UK residents planning their own estate, the position changed from 6 April 2025: people who have been UK resident for at least 10 of the previous 20 tax years are within UK inheritance tax on their worldwide assets, including property in India. Estate planning and a will covering Indian assets are worth considering.
A separate Indian will for Indian property can make life much easier for your heirs. We work with your lawyers in both countries.
How we help with an inheritance.
List the assets
Bank accounts, deposits, investments, property and policies.
Plan the documents
Which certificates each institution needs, working with your lawyer where probate is required.
Move assets to your name
Into NRO accounts and NRI-compliant investments.
Handle income and sale tax
Indian returns, TDS and lower TDS certificates.
Send money to the UK
Forms 145 and 146 and bank support within the USD 1 million limit.
Why NRIs in the UK choose us for India tax.
We work with the India side of your tax while keeping your UK Self Assessment and treaty position in view.
Every computation is checked by a second Chartered Accountant before anything is filed.
A written scope and fee before work starts, with no surprise charges later.
Encrypted document sharing and e-verification, so nothing needs a trip to India.
Returns, TDS refunds, FEMA questions and property sales handled by the same team.
Clear explanations of what you owe, why, and what to keep for next year.
Inheritance support for families across the UK.
We help families throughout the UK deal with inheritances in India, with patience and clear explanations, so the paperwork does not add to a difficult time.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Inheritance FAQs.
Dealing with an inheritance in India?
Tell us what was left and where. We will guide you through it, one step at a time.
This page is general guidance based on Indian income-tax and FEMA rules as they stand, including the Income-tax Act, 2025 that applies from 1 April 2026. It is not legal or financial advice for your situation. Rates, limits and deadlines can change, so please speak to us before acting on it.