Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
No tax on inheriting
India abolished estate duty in 1985 and has never reintroduced an inheritance or ‘death’ tax. So when you inherit money, shares or property — in India or as an NRI — there is nothing to pay and nothing to report simply for receiving it. This is different from many Western countries that levy estate tax.
Where tax does arise later
Tax attaches to the inherited assets afterwards: rent from an inherited property is taxable, and capital gains arise when you sell — computed from the original owner’s cost. Inheritance is also distinct from gifts, which have their own ₹50,000 / relative rules. Confirm the position if large foreign assets are involved.
A worked example
Example: you inherit ₹1 crore of shares and a flat from a parent — no tax on the inheritance itself. Later, the flat’s rent is taxable each year, and selling the shares or flat triggers capital gains based on the original cost. To take inherited funds abroad, use the USD 1 million route with documentary proof. Our NRI tax service can guide the next steps.