💬 NRIs Lose Crores of Inheritance in India Every Year
Every year, thousands of NRIs lose crores worth of family property in India because they don’t know how to legally claim and register inherited assets in their name.
The problem begins when an NRI visits the Sub-Registrar’s office or bank to claim their late parent’s property—and is asked for a “Succession Certificate” or Legal Heir Certificate that they don’t have.
And if there’s no Registered Will, this process becomes one of the hardest things to navigate.
⚖️ Understanding Inheritance and Succession
Inheritance means the transfer of assets of a deceased person to their legal heirs or beneficiaries. For NRIs, inheritance can happen in two ways:
- Through a Registered Will (Testamentary Succession) — when the deceased clearly mentions beneficiaries.
- Without a Will (Intestate Succession) — when the deceased dies without a valid Will, and the property is distributed as per India’s succession laws.
In India:
- Hindu Succession Act, 1956 applies to Hindus, Jains, Sikhs, and Buddhists.
- Indian Succession Act, 1925 applies to Christians and Parsis.
- Muslim Personal Law governs Muslim inheritance separately.
🏡 What Kind of Property Can an NRI Inherit?
Under the Foreign Exchange Management Act (FEMA), NRIs and OCIs can inherit residential, commercial, and agricultural properties in India.
- 🏠 Residential property – apartments, houses, villas.
- 🏢 Commercial property – offices, shops, buildings.
- 🌾 Agricultural land, plantations, and farmhouses – cannot be purchased by NRIs, but can be legally inherited.
However, if a foreign national (non-OCI, non-PIO) inherits agricultural land, FEMA requires that it must be disposed of to a resident Indian within a specified period.
📜 Legal Procedure to Transfer Ownership
1️⃣ If There Is a Registered Will
If the deceased left a Registered Will, the NRI heir must:
- Obtain a Probate from an Indian court (a legal validation of the Will).
- Present the Will, death certificate, and ID proofs at the Sub-Registrar’s office.
- Apply for mutation (Patta transfer) at the local Tahsildar office.
🔹 Use Verified.RealEstate’s Legal Advice to help with probate filing, court procedures, and document attestation.
2️⃣ If There Is No Will (Intestate Succession)
Without a Will, you’ll need legal proof of heirship before any registration.
That means obtaining:
- Legal Heir Certificate (Varisu Certificate) from the Tahsildar – accepted for Patta, mutation, and local land records in Tamil Nadu.
- Succession Certificate from the District Court – mandatory for financial assets (bank deposits, FDs, shares, etc.).
These certificates establish who the rightful heirs are.
🕒 The court process can take 6–18 months, includes a 45-day public notice period, and can cost several lakhs depending on asset value and lawyer fees.
🔹 Use Verified.RealEstate Legal Heir Certificate Support for preparing petitions, affidavits, and Power of Attorney drafts without travel hassles.
3️⃣ Registering the Inherited Property in NRI’s Name
Once you have the required heirship proof:
- Apply for Patta transfer (mutation) at the revenue office via e-Sevai (in Tamil Nadu).
- Provide death certificate, heir certificate/succession proof, EC, tax receipts, and ID proofs.
- If multiple heirs exist, execute a Family Settlement or Release Deed to transfer shares.
Tamil Nadu offers major stamp duty relief:
- 🧾 Stamp Duty: 1% (max ₹25,000)
- 🧾 Registration Fee: 1% (max ₹4,000)
🌍 What Is Apostille and Why NRIs Need It
An apostille is an official government seal that authenticates a document for international use under the Hague Convention of 1961. It verifies the signature and authority of the person who issued or notarized the document, making it legally valid in all member countries — including India.
For NRIs, any Power of Attorney, affidavit, or declaration signed abroad must be apostilled by the foreign ministry or designated authority in their country before being sent to India. Without this attestation, Indian courts, banks, and sub-registrars will treat such documents as unverified or invalid.
📁 Key Documents Required
- Death Certificate (original & notarized copy)
- Registered Will / Legal Heir Certificate / Succession Certificate
- Original Property Title Deed
- Encumbrance Certificate (EC)
- Tax Paid Receipts
- Identity Proofs (Passport, PAN, OCI Card)
- Power of Attorney (Apostilled, if executed abroad)
- NOC from Co-Heirs (if applicable)
🔹 Verified.RealEstate’s Ownership Chain & EC Verification helps confirm property history, check encumbrances, and avoid disputes before registration.
⚠️ Common Hurdles Faced by NRIs
- No Registered Will → Leads to 6–18 months of court process.
- Name Mismatch → Different spellings across EC, Patta, Aadhaar, and Deed stall transfers.
- Co-Heirs Abroad → Apostille delays and missing NOCs prolong the file.
- Unclear Titles → Old deeds without traceable registration numbers create litigation risk.
- Revenue Office Delays → Field inspections and missing VAO signatures can hold Patta for months.
🔹 The Verified.RealEstate Legal Advisory Service connects you with property lawyers who handle NRI-specific inheritance and mutation issues, including apostille, probate, and NOC verification.
💸 Tax Implications
- Inheritance itself is not taxed in India.
- Rental income from inherited property is taxable under the Income Tax Act, 1961.
- Capital gains tax applies only if you sell the property later.
- Under DTAA (Double Taxation Avoidance Agreement), NRIs can avoid being taxed twice — in India and in their resident country.
🔹 Verified.RealEstate’s NRI Service assists with various services like property management and its maintenance.
🧭 Steps to Simplify the Process
- Get your parents to create a Registered Will naming you as heir.
- Update nominations on all bank, insurance, and mutual fund accounts.
- Keep digital copies of all property papers (deed, EC, tax receipts, electricity bill).
- Execute Apostilled POA early to avoid delays in court or registrar offices.
- Use a verified legal advisor to file inheritance and Patta mutation correctly the first time.
📖 Jargons Explained
*NRI (Non-Resident Indian):refers to an Indian citizen who lives outside India for employment, business, or any purpose that makes their stay abroad more than 182 days in a financial year.They still hold an Indian passport, and maintain their voting rights, but their residential status for tax and legal purposes is considered “non-resident.”
*OCI (Overseas Citizen of India): An OCI is a foreign national of Indian origin who has been granted a lifelong visa and limited citizenship privileges under India’s Overseas Citizenship of India scheme.
*PIO (Person of Indian Origin): Earlier, this was a separate category for people of Indian ancestry holding foreign passports. In 2015, the PIO and OCI schemes were merged — meaning all PIO cardholders are now treated as OCI cardholders.
⚖️ Disclaimer:
This article is for educational and informational purposes only. It does not constitute legal or financial advice. Property laws and tax implications may vary by state and individual circumstances. Always consult a qualified legal professional or use Verified.RealEstate’s Legal Advisory Service for personalized guidance.