NRIs and OCIs can inherit any kind of property in India, including agricultural land, farmhouses and plantation property, from a resident or a non-resident. Inheritance itself is not taxed in India. The work lies in proving your right as heir, moving the revenue and registration records into your name, and, if you sell, handling capital gains tax, non-resident TDS and the USD 1 million per year repatriation route.
Key takeaways
- FEMA allows NRIs and OCIs to inherit any immovable property, provided the deceased acquired it lawfully.
- Inheritance is not taxed on receipt; when you sell, the previous owner’s cost and holding period count towards your capital gains calculation.
- In Tamil Nadu, heirs usually need a legal heir certificate or the will, then a patta transfer and updated tax records.
- Since December 2025, probate of a will is no longer mandatory in Chennai, Mumbai and Kolkata, though some buyers and banks may still ask for proof.
- Sale proceeds of inherited property can be repatriated within USD 1 million per financial year.
What FEMA says about inheritance
Under the FEMA rules, an NRI or OCI may acquire immovable property in India by inheritance from a person resident in India, or from a person resident outside India who acquired it in line with the foreign exchange law of the time. Unlike purchase or gift, inheritance extends to agricultural land, plantation property and farmhouses. You can hold such land indefinitely. If you sell inherited farm land, the buyer must be a person resident in India who is an Indian citizen. See our explainer on NRIs and agricultural land.
Proving you are the heir
| Situation | Usual document | Where from |
|---|---|---|
| No will (intestate) | Legal heir certificate | Revenue department (Tahsildar), applied through Tamil Nadu e-services |
| Will exists | Original will; probate if you or a buyer need a court’s confirmation | Civil court for probate |
| Debts, securities, bank deposits | Succession certificate, if the institution requires it | Civil court |
| Family agreement on division | Registered partition or release deed | Sub-registrar office |
The Repealing and Amending Act, 2025, which received assent on 20 December 2025, omitted section 213 of the Indian Succession Act. That section had made probate compulsory for certain wills relating to property in Chennai, Mumbai and Kolkata. Probate is now optional, but buyers and lenders may still want strong proof of a will’s validity, so ask your advocate whether obtaining one is wise in your case. Our guide to the legal heir certificate vs succession certificate explains the documents.
Taking title in Tamil Nadu
- Collect the documents: death certificate, legal heir certificate or will, parent documents of the property, and identity proof of all heirs.
- Agree among heirs: if several heirs inherit, decide who keeps what. A registered partition deed or release deed avoids later disputes. Releases between family members attract concessional stamp duty in Tamil Nadu; check current rates on TNREGINET.
- Patta transfer: apply to move the patta into the heirs’ names. Many patta services are available through the state’s e-services portal.
- Update local records: change the name on Coimbatore Corporation or panchayat property tax, electricity and water connections.
- Check the EC: get a fresh Encumbrance Certificate to confirm there are no loans or claims you did not know about.
If you cannot travel, a registered power of attorney from abroad lets a trusted person handle these steps.
Tax on inherited property
- On inheritance: no income tax on receiving property by will or succession.
- Rent: taxable in India in your hands once the property is yours; the tenant deducts non-resident TDS.
- On sale: the cost is the previous owner’s cost, and the holding period includes the previous owner’s period. These rules were in section 49 and related provisions of the old Act and continue under the Income-tax Act, 2025 with new numbering. Long-term gains (over 24 months) are taxed at 12.5% without indexation for NRIs.
- TDS: the buyer deducts non-resident TDS, usually on the full price, unless you obtain a lower deduction certificate. See TDS on NRI property sales.
- Exemptions: reinvestment exemptions such as the familiar sections 54 and 54EC are available to NRIs, subject to conditions.
Sending the money abroad
Sale proceeds of inherited property are credited to your NRO account and can be remitted within the USD 1 million per financial year limit, with documentary evidence of the inheritance, proof of tax paid, Form 145 and, where applicable, the chartered accountant’s certificate on Form 146. Larger amounts need RBI approval or can be spread across financial years.
Keep, rent or sell?
Many families with roots in Coimbatore hold an old house in areas like R.S. Puram or Saibaba Colony, or farm land on the city’s fringes. Before deciding, get a valuation, look at the building’s condition, and weigh rental demand against the effort of managing from abroad. Old houses on good plots are often worth more as land. If you choose to sell, a clean title file and a lower deduction certificate make the sale faster.
Frequently asked questions
Can an NRI inherit agricultural land in India?
Yes. FEMA allows NRIs and OCIs to inherit any immovable property, including agricultural land. If you sell it, the buyer must be a resident Indian citizen.
Is inherited property taxed in India?
Not when you receive it. Tax arises on rent from the property and on capital gains when you sell.
Is probate needed for a will relating to Tamil Nadu property?
Since the Repealing and Amending Act, 2025 omitted section 213 of the Indian Succession Act, probate is no longer mandatory, even for Chennai. Buyers and banks may still want strong proof, so take legal advice.
How much of the sale money from inherited property can I send abroad?
Up to USD 1 million per financial year from your NRO account, after tax, with documents proving the inheritance.
This article is general information as of September 2026, not legal, tax or financial advice. Rules and rates change; confirm with a qualified advocate, chartered accountant or the relevant department before you act.
References
- Ministry of External Affairs: Acquisition and transfer of immovable property in India (FEMA summary)
- Khaitan & Co: Probate no longer mandatory after the Repealing and Amending Act, 2025
- ICICI Bank: NRIs selling real estate in India, repatriation rules
- Tamil Nadu e-Services: patta, chitta and land records
Inherited a property in or around Coimbatore?
We can help you assess its value, find tenants or buyers, and coordinate with your advocate on title and patta work while you are abroad.
