- Inheriting is not a taxable event in India. Income from the asset, and gains when you sell it, are.
- The money has to sit in an NRO account before it can leave the country.
- Remittances out of the NRO account run under an annual limit of USD 1 million per financial year.
- The bank needs proof of the inheritance — death certificate plus the Will, probate, succession certificate or legal heir certificate.
- Two forms and a chartered accountant's certificate accompany the transfer.
First, the money has to be yours on paper
A bank will not remit an inheritance on the strength of a family understanding. It needs the document that establishes your entitlement, and which document that is depends on whether there was a Will and what kind of asset you inherited.
Get this wrong and everything downstream stalls: the asset cannot be transferred into your name, the proceeds cannot be credited to your account, and the remittance cannot be applied for. It is the step worth spending money on.
Inherited funds are credited to an NRO account. They cannot go into an NRE account, because the money originated in India and is not repatriable by default. Trying to route it through NRE to avoid the limit creates a FEMA problem where none existed.
The annual limit, and what it really covers
Balances in an NRO account — including inheritance and the proceeds of selling inherited property — can be remitted abroad up to USD 1 million in a financial year. The limit is per person, per financial year, and it resets on 1 April. For most inheritances it is generous; for a large estate, it means planning the transfer across two or more years.
Banks reject at step four more than anywhere else — usually because the paperwork at step one was thin.
The forms, and the accountant
Two forms accompany the remittance: a declaration by you and a certificate from a chartered accountant confirming the tax position on the money being sent. They are not a formality. The certificate is what tells the bank it is safe to release the funds, and it is where the purpose code — inheritance, rather than a sale or a gift — gets recorded correctly.
- No tax in India on the inheritance itself
- No estate duty
- Proof of entitlement required
- Credited to NRO
- Capital gains tax applies
- The previous owner's cost and holding period carry over
- TDS is deducted by the buyer
- A lower TDS certificate is worth applying for
If you do sell, the cost and holding period of the person you inherited from carry over to you, which usually makes the gain long term even if the property only became yours last year.
India not taxing an inheritance says nothing about where you live. Some countries tax worldwide income and gains, some have inheritance or estate taxes of their own, and most expect foreign assets to be disclosed. Check the position where you are resident before the money moves.
Where it usually goes wrong
Three patterns account for most stuck inheritances: nobody obtained the right entitlement document, the asset was never mutated into the heir's name, or the money was moved into the wrong account and then had to be unwound. All three are avoidable, and all three are far cheaper to prevent than to fix.
Is inherited money taxable in India?
No. India has no estate duty and inheriting is not a taxable event. Income the asset produces afterwards, and gains when you sell it, are taxable.
How much inherited money can I send abroad in a year?
Up to USD 1 million per financial year from your NRO account, subject to the documentation and certificates being in order.
Can inherited funds go into my NRE account?
No. They are credited to an NRO account. Repatriation then happens from there under the annual limit.
What proof does the bank need?
The death certificate, plus whichever document establishes your entitlement: the Will with probate where required, a succession certificate, or a legal heir certificate.
What if the estate is larger than the annual limit?
The remittance is spread across financial years, or an application is made for approval beyond the limit. This is worth planning before the first transfer, not after.
This article is for general information only and reflects rules current as of 2026. It is not legal, tax, or financial advice — rules, rates and procedures can change, so please confirm the current position with a qualified professional before acting.