Key takeaway
Living abroad does not take away your right to inherit. NRIs and OCI cardholders can inherit any kind of property in India — houses, flats, land, including agricultural land, deposits and shares. Your share depends on whether there is a will and on the succession law that applies to the person who died. Foreign-exchange rules matter mainly when you later sell and move the money abroad.
Inheritance and foreign-exchange law
Under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, NRIs and OCI cardholders may acquire immovable property in India by inheritance. Unlike purchase — where agricultural land, plantation property and farmhouses are off-limits to them — inheritance covers all categories of property. Citizens of certain neighbouring countries face special restrictions; check with a lawyer if that applies to you.
Which law decides your share?
- With a valid will — the will governs, subject to the law that applies. Where probate is compulsory (broadly, for Hindu, Sikh, Jain and Buddhist wills relating to property in Mumbai, Chennai and Kolkata), the will must be probated.
- Hindus, Sikhs, Jains and Buddhists without a will — the Hindu Succession Act, 1956. For a man, Class I heirs (such as the widow, children and mother) share equally. Daughters have equal rights with sons, including as coparceners in joint family property since the 2005 amendment.
- Muslims — Muslim personal law, which fixes shares for different heirs; a will can generally cover only up to one-third of the estate without the other heirs’ consent.
- Christians and Parsis — generally the Indian Succession Act, 1925.
What you will need to do
- Collect documents — death certificate, family tree, the will (if any) and title documents.
- Establish heirship — through a legal heir certificate, a succession certificate, probate or letters of administration, depending on the asset (see our guide comparing them).
- Agree among the heirs — a registered release or relinquishment deed, or a family settlement, can consolidate ownership; otherwise co-heirs own the property jointly.
- Update records — mutation in municipal or revenue records, and transmission of shares or deposits.
- Decide what to do with it — keep it, rent it out, partition it or sell it.
All of these can usually be handled through a lawyer and a family member in India with a power of attorney.
Tax and money
- India has no inheritance or estate tax at present. Receiving property by inheritance is not taxed as income in your hands.
- When you later sell, capital gains are computed using the previous owner’s cost and holding period, and the buyer must deduct TDS because you are a non-resident.
- Sale proceeds of inherited assets can be repatriated from your NRO account up to USD 1 million per financial year, subject to RBI conditions and documentary evidence.
- Your country of residence may tax the gain or ask you to report the asset — take local advice.
Common mistakes to avoid
- Letting years pass without updating records, while someone else occupies or deals with the property.
- Signing a relinquishment deed abroad without understanding what you are giving up.
- Assuming the nominee on a bank account owns the money — a nominee generally holds it for the legal heirs.
- Ignoring probate where it is compulsory.
Frequently asked questions
I am a foreign citizen with an OCI card. Can I inherit my father’s farmland?
Yes. OCI cardholders can inherit agricultural land. Rules on later transfer and repatriation should be checked before you sell.
My siblings in India are refusing to share. What can I do?
You can send a legal notice, try mediation, and if needed file a partition suit. See our partition service page.
Do I need to come to India?
Often not. Documents can be signed abroad and attested or apostilled, and many courts allow video appearance.
Related LegalCops services
- NRI inheritance lawyer
- Ancestral property disputes
- Legal heir certificate
- Find a lawyer in India · Request a call back
References
- Foreign Exchange Management (Non-debt Instruments) Rules, 2019
- Hindu Succession Act, 1956; Indian Succession Act, 1925; Muslim Personal Law (Shariat) Application Act, 1937
- Reserve Bank of India — Master Direction on remittances by NRIs/PIOs
Last reviewed: November 2026.
The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.
