Key takeaway
NRIs and OCIs can inherit any property in India, including agricultural land. They can keep it, rent it out and sell it — but agricultural land, plantations and farmhouses can generally be sold only to an Indian citizen resident in India. Sale proceeds can be repatriated within the annual limit after tax.
Inheriting
Under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, an NRI or OCI may acquire any immovable property in India by inheritance from a person who held it lawfully. No RBI approval is needed.
Holding and renting
- You can hold inherited property indefinitely.
- Rent is Indian income — receive it in an NRO account and pay tax.
- Keep revenue and municipal records updated in your name.
Selling
- Residential or commercial property — can be sold to a person resident in India, an NRI or an OCI.
- Agricultural land, plantations, farmhouses — generally only to an Indian citizen resident in India.
- The buyer deducts TDS at the non-resident rate; consider a lower deduction certificate.
Gifting
Residential and commercial property can be gifted to relatives, subject to the rules. Agricultural land, plantations and farmhouses held by NRIs or OCIs can generally be gifted only to Indian citizens resident in India.
Repatriating proceeds
Sale proceeds of inherited property can be remitted abroad within the USD 1 million per financial year facility for NRO balances, with proof of inheritance and tax compliance (usually Forms 15CA/15CB).
Documents to keep
- Death certificate and heirship proof — will and probate, succession certificate or legal heir certificate
- Original title documents of the deceased
- Mutation records in your name
- Sale deed, tax returns and TDS certificates when you sell
Frequently asked questions
Do I need RBI permission to inherit?
No, inheritance from a lawful holder is permitted.
Can I sell inherited farmland to another NRI?
Generally no — only to an Indian citizen resident in India.
Is inherited property taxed?
Inheritance itself is not taxed in India, but rent and capital gains on sale are.
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References
- Foreign Exchange Management (Non-Debt Instruments) Rules, 2019
- Foreign Exchange Management (Remittance of Assets) Regulations, 2016
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.
