Key takeaway
Inheritance passes ownership, but records do not update themselves. Prove who the heirs are, settle each heir’s share (often through a registered release deed), then mutate the revenue and municipal records. Only then is the property easy to sell, rent or mortgage.
Step 1: Establish how the property passes
- With a will — the will governs; probate may be required or requested.
- Without a will — the personal succession law applies, for example the Hindu Succession Act, 1956 for Hindus, Sikhs, Jains and Buddhists, or the Indian Succession Act for Christians and Parsis, and Muslim personal law for Muslims.
Step 2: Prove heirship
- Death certificate
- Legal heir certificate, succession certificate or probate, as the office requires
- Family tree and identity documents of all heirs
Step 3: Settle the shares
If one heir is to take the whole property, the others can execute a release (relinquishment) deed in that heir’s favour. It must be stamped under state law — many states give concessional duty for family releases — and registered. Heirs abroad can sign through a power of attorney or before an Indian mission. Alternatively, the heirs can sign a partition deed.
Step 4: Mutate the records
Apply to the municipal body (for urban property) or revenue office (for land) to record the new owner. Societies also need to transfer the share certificate.
Step 5: Update everything else
- Property tax and utility accounts
- Insurance on the property
- Any tenancy agreement and rent account
If you plan to sell
- All co-owners must join the sale unless shares have been settled.
- For capital gains, the previous owner’s cost and holding period are generally taken into account.
- The buyer must deduct TDS at the non-resident rate if you are an NRI; consider a lower deduction certificate.
- Proceeds can be repatriated within the annual limit, with tax compliance.
FEMA note
NRIs and OCIs can inherit any property in India, including agricultural land, but agricultural land can generally be sold only to an Indian citizen resident in India.
Frequently asked questions
Is a release deed taxable?
Stamp duty applies under state law; release in favour of a family member is often at a concessional rate.
Can I transfer property without travelling to India?
Usually yes, through a power of attorney and documents signed abroad.
Does mutation make me the owner?
No, it records ownership that comes from inheritance or a will.
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References
- Hindu Succession Act, 1956; Indian Succession Act, 1925
- Registration Act, 1908 — Section 17; state stamp laws
- Foreign Exchange Management (Non-Debt Instruments) Rules, 2019
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.
