How should an NRI manage and inherit assets in India?
Living abroad does not have to mean losing control of your property, accounts and investments in India. This page maps the four things NRIs usually need to do, and how to do each one cleanly.
As an NRI you can generally hold, manage, inherit and sell most Indian assets, with some limits (for example on agricultural land). Manage remotely through a Power of Attorney and an NRO account. Inheritance itself is not taxed in India, though later income and capital gains are. On a sale, tax is withheld at source and repatriation from an NRO account is subject to annual limits and documentation. Make an India Will for your India assets. Verify the current position with a qualified professional.
- An NRI can generally hold, inherit and sell most Indian assets; a few categories such as agricultural land carry restrictions. [VERIFY]
- Manage from abroad with a Power of Attorney and the right bank account (an NRO account for India-source money).
- Inheritance is not itself taxed in India, because there is no estate or inheritance tax. Income and later capital gains on inherited assets are taxable.
- On a property sale, tax is withheld at source and capital-gains tax applies; the rates and thresholds change, so verify them each time. [VERIFY]
- Repatriation of sale proceeds from an NRO account is subject to annual limits and documentation, including a CA certificate and Form 15CA / 15CB. [VERIFY]
- Every NRI should have an India Will for Indian assets, coordinated with any foreign Will.
The four things NRIs usually need to do
Most NRI questions about India assets fall into one of four buckets. It helps to name which one you are in before you do anything, because each follows a different route.
What do you need to do with your India asset?
Start with a single asset and the action you have in mind. The tree below points you to what that action usually needs, and the sections underneath explain each route.
Managing India assets from abroad
You do not have to fly to India for routine matters. Most day-to-day management can run through a properly drawn Power of Attorney and the right bank accounts. The table below covers the assets NRIs most often manage remotely.
| Asset / action | What to know | Practical step |
|---|---|---|
| Bank accounts | NRIs generally use an NRE account for foreign-earned money and an NRO account for India-source income such as rent, dividends or a sale. The two are treated differently for repatriation. [VERIFY] | Convert or redesignate resident accounts to NRO / NRE with your bank once your status changes. |
| Residential / commercial property | An NRI can generally hold, buy, inherit and let out residential and commercial property in India. [VERIFY] | Keep title deeds, tax receipts and the mutation record in order; appoint someone reliable to manage tenants. |
| Agricultural land, farmhouse or plantation | An NRI generally cannot purchase agricultural land, a farmhouse or plantation property, but may be able to inherit such property, subject to conditions. This area is sensitive; do not assume. [VERIFY] | Take specific FEMA advice before buying, holding or selling any such land. |
| Shares & mutual funds | Held in demat form; on death they are transmitted to the nominee or heirs. NRI investment routes and reporting differ from resident ones. [VERIFY] | Keep demat and folio details current; check whether holdings sit in a resident or NRI account. |
| Managing remotely | A Power of Attorney lets a trusted person act for you in India, within the powers you grant. Keep those powers specific and limited. | Have a focused PoA drafted and, where needed, properly executed and registered for use in India. |
A broad, open-ended PoA is convenient but risky when you are far away. Limit it to defined tasks (say, letting a specific flat or completing one sale), name a person you fully trust, and review it periodically. See Power of Attorney drafting.
Inheriting Indian assets as an NRI
India has no inheritance or estate tax. So when you inherit property, money or investments in India, the inheritance itself is generally not taxed in your hands. What is taxable is what happens afterwards: income from the inherited asset (such as rent or interest), and capital gains when you eventually sell it. [VERIFY] the current position with a qualified professional.
The transfer into your name still needs the usual succession documents, which depend on how the asset was held and whether there was a Will. A nomination or joint holding may release an asset without a court process, while other cases need a succession certificate or a letter of administration. It helps to keep three roles distinct: the nominee (who receives an asset to hold), the legal heir (who inherits under succession law), and the beneficiary (whom a Will names). See nominee vs legal heir.
Where there is no Will, the estate passes under the succession law that applies to the family, regardless of where the heirs live. Your residence abroad affects tax and repatriation, not your place in the line of succession.
Selling an Indian asset and repatriating the money
A sale is where the most moving parts appear, so treat it as a process rather than a single event. In general terms:
The TDS rate on an NRI property sale, the capital-gains rate, and the annual repatriation ceiling all change with the law and are subject to conditions. These are governed by FEMA and the Income-tax Act, 2025, and the rules are updated periodically. Verify the current position with a qualified chartered accountant before selling or remitting. This point should be verified with the latest applicable law, regulation or professional advice before implementation.
Your India Will and succession
If you own assets in India, you should generally have a Will that covers those Indian assets. Many NRIs also have a Will in their country of residence, and the two must be coordinated so they do not overlap, contradict each other, or accidentally revoke one another. How your assets are held, and questions of domicile, affect how your estate is dealt with, so this is worth getting right rather than leaving to chance.
A well-made India Will names an executor, describes the India assets clearly, and reduces the risk that your family is left with a court process or a dispute. Alongside it, a Power of Attorney helps someone manage those assets for you while you are abroad. For the specific question of whether NRIs need an India Will, see do NRIs need a Will for assets in India, and for the broader plan, our NRI succession planning advisory and Will drafting service.
Following the 2025 change that removed the old probate provision from the Indian Succession Act, probate is generally not compulsory in India, though a specific bank, buyer or sub-registrar may still ask for it. A clear India Will keeps this simple for your family. (Verify against the latest official text and applicable law.)
Documents an NRI often needs
You will rarely need every item below at once. Which apply depends on whether you are managing, inheriting, selling or planning. Keep the relevant ones ready and current.
| Document | Why you need it |
|---|---|
| PAN | Required for tax, property transactions and most investments in India. Keep it linked and active. [VERIFY] |
| NRO / NRE bank account | NRO for India-source income and sale proceeds; NRE for foreign-earned funds. Correct account type drives repatriation. |
| Power of Attorney | Lets a trusted person manage, let, or complete a sale on your behalf in India. Keep it specific. Drafting. |
| Title deed & mutation record | Proof of ownership and that the property records reflect the current owner; needed to manage, transfer or sell. |
| Succession certificate / legal heir certificate / letter of administration | The route to establish heirs and collect or transfer an inherited asset, as applicable to the situation. Succession certificate · Letter of administration. |
| CA certificate & Form 15CA / 15CB | Required to repatriate funds abroad from an NRO account, certifying that tax has been accounted for. [VERIFY] |
| Your Will | Sets out who receives your India assets and names an executor, so your family avoids a dispute or court process. Will drafting. |
Common mistakes NRIs make
- Continuing to use a resident bank or demat account after becoming an NRI, instead of redesignating it as NRO or NRE.
- Assuming an inheritance is taxable in India, or, the opposite error, assuming the later rent or capital gain is tax-free.
- Signing a broad, unlimited Power of Attorney and handing it to someone without clear limits or review.
- Relying on a remembered TDS rate or repatriation limit instead of confirming the current figure with a CA before a sale.
- Having only a foreign Will, or two Wills that contradict each other, with nothing that clearly deals with the India assets.
- Trying to buy agricultural land, or selling inherited farmland, without specific FEMA advice.
NRI action checklist
Keep this handy. Work through the items that fit your situation.
- Confirm your residential status and redesignate bank and demat accounts as NRO or NRE.
- Keep PAN active and linked, and title deeds and mutation records up to date.
- Put a narrow, task-specific Power of Attorney in place for someone you trust in India.
- For an inheritance, identify how each asset was held and which succession document applies.
- Remember that inheritance is not taxed, but income and later capital gains are.
- Before any sale, confirm the current TDS and capital-gains position with a chartered accountant.
- For repatriation, arrange the CA certificate and Form 15CA / 15CB, and check the annual limit.
- Make an India Will for your India assets and coordinate it with any foreign Will.
Managing or inheriting assets in India from abroad?
Tell us what you own in India and what you want to do with it. We will map the exact steps, documents and tax points, and flag what needs a CA or lawyer. A calm, structured plan, with no obligation.
Talk to NexGen about your India assetsSelling property
Selling Indian property: the tax and TDS steps
When an NRI sells Indian property, the buyer is generally required to withhold tax at source (TDS) from the sale price, and capital-gains tax applies on the gain. Because the withholding is on the sale value rather than only the gain, it can exceed the actual tax due.
An NRI seller can apply for a lower or nil withholding certificate so that tax is deducted closer to the real liability, and can claim available exemptions on reinvestment. Rates, thresholds and forms change, so confirm the current position with a qualified chartered accountant before the sale. [VERIFY all rates and thresholds against the Income-tax Act, 2025.]
Sending money abroad
Repatriating money abroad, step by step
Sale proceeds and inherited funds are usually routed through an NRO account and remitted abroad within the annual limit that applies to an NRI, using the prescribed documentation, typically a chartered accountant's certificate and Forms 15CA and 15CB.
Credit the proceeds to the NRO account, compute and pay any tax due, obtain the CA certificate and file Forms 15CA/15CB, then request the remittance from the bank within the applicable annual ceiling. The exact limit and forms should be confirmed with your bank and a CA. [VERIFY the current annual limit.]
Two countries
Double taxation and the DTAA
Income or gains from Indian assets may be taxable both in India and in your country of residence. India has Double Taxation Avoidance Agreements (DTAAs) with many countries, which can provide relief or a credit so the same income is not taxed twice.
The relief depends on the specific treaty and your residence, and often needs a tax residency certificate and correct reporting in both countries. Take advice in both jurisdictions rather than assuming automatic relief.
Frequently asked questions
Do NRIs need a Will for their Indian assets?
Generally yes. If you own assets in India, an India Will that clearly deals with them makes transfer to your family much simpler and reduces the risk of a dispute or court process. If you also have a Will abroad, the two should be coordinated so they do not overlap or accidentally revoke each other. See do NRIs need a Will for assets in India.
Is inherited money taxed in India?
The inheritance itself is generally not taxed, because India has no estate or inheritance tax. What is taxable is what comes later: income from the inherited asset, such as rent or interest, and capital gains when you sell it. Confirm the current position with a qualified professional. [VERIFY]
Can an NRI inherit agricultural land?
An NRI generally cannot purchase agricultural land, a farmhouse or a plantation, but may be able to inherit such property, subject to conditions. This is a sensitive area under FEMA, so take specific advice before holding or selling any such land rather than assuming. [VERIFY]
How much can an NRI repatriate from India?
Repatriation of funds from an NRO account abroad is subject to an annual limit and to documentation, typically including a chartered accountant's certificate and Form 15CA / 15CB. The ceiling and conditions change and are governed by FEMA, so verify the current limit and consult a CA before remitting. [VERIFY]
Can an NRI manage property in India without visiting?
Yes, in most cases. A Power of Attorney lets a trusted person act for you in India within the powers you grant, so routine management, letting and even a sale can be handled without your physical presence. Keep the PoA specific and limited, and review it periodically. See Power of Attorney drafting.
Which law decides inheritance if there is no Will?
Where there is no Will, the estate passes under the succession law that applies to the family, which depends on religion: broadly the Hindu Succession Act, 1956 for Hindus, Buddhists, Sikhs and Jains; the Indian Succession Act, 1925 for Christians and Parsis; and the applicable personal law for Muslims. Living abroad does not change your place in the line of succession.
Can an OCI or PIO inherit property in India?
An Overseas Citizen of India or person of Indian origin can generally inherit immovable property in India, including from a resident, subject to the applicable FEMA rules. Agricultural land, a farmhouse or plantation property is treated differently and is usually inheritable but not freely purchasable. Confirm the current position for your case.
Do NRIs pay tax on rental income from India?
Rental income from Indian property is generally taxable in India, and the tenant may be required to withhold tax at source when paying rent to an NRI. The income is reported in an Indian return, with relief for any double taxation under an applicable treaty. Verify the current position.
What is a lower or nil TDS certificate?
It is a certificate an NRI seller can obtain so that the buyer withholds tax closer to the actual capital-gains liability rather than on the full sale value. It reduces the amount locked up as excess TDS that would otherwise have to be claimed back later. [VERIFY the current procedure.]
Can I gift my Indian property to a relative abroad?
Gifts of Indian property are possible but are subject to FEMA and tax rules that depend on the type of property and the relationship, and agricultural land is treated differently. Take specific advice before gifting, as the rules and reporting requirements are detailed.
Do I need to travel to India to sell or manage property?
Not necessarily. Many NRIs act through a trusted person under a properly drafted and, where needed, registered power of attorney. Because a power of attorney over property can be misused, it should be carefully scoped and given only to someone you trust.
What are Forms 15CA and 15CB?
They are the declarations used when remitting funds abroad from India. Form 15CB is a chartered accountant's certificate on the taxability of the remittance, and Form 15CA is the remitter's declaration filed with the tax department, which the bank needs before processing the transfer.
Related reading
Managing, inheriting, selling and succession are usually handled better together than one crisis at a time. When you are ready, a professionally drafted Will and a coordinated succession plan are the simplest place to start.
Reviewed by Dr. Deepak Jain, CTEP, CWM
Founder and Managing Director, NexGen Estate Planning Solutions; Co-founder and Director, AAFM India. Written by the NexGen Content & Research Team and reviewed for legal accuracy. NexGen has helped 3,000+ families, including NRIs, structure and transfer wealth across generations.
- Foreign Exchange Management Act, 1999 (FEMA) and rules made under it — acquisition, holding and transfer of immovable property by NRIs, NRO / NRE accounts, and repatriation of funds. Verify the current rules and limits.
- Income-tax Act, 2025 — tax on income and capital gains, withholding of tax at source on a sale by an NRI, and the CA certificate / Form 15CA and 15CB process for remittance. Rates and thresholds change; verify the current position.
- Indian Succession Act, 1925 — succession certificate, letters of administration, and probate (probate provision omitted by the Repealing and Amending Act, 2025).
- Hindu Succession Act, 1956 — intestate succession for Hindus, Buddhists, Sikhs and Jains; personal law for other communities.
- There is at present no estate duty or inheritance tax in India.