Can an NRI living in the UAE inherit agricultural land in India?

Yes. NRIs can inherit agricultural land in India through succession, even though they are not permitted to purchase it directly. The inheritance must comply with FEMA regulations and the land must have been legally owned by the previous owner. Consult a qualified Indian lawyer to confirm the specific conditions applicable to your situation.

Is there an inheritance tax in India?

India does not levy an inheritance tax. No tax is due at the point of inheriting property or assets. However, capital gains tax will apply if and when an NRI heir sells the inherited property. The cost of acquisition for capital gains purposes is the cost to the previous owner, with indexation benefits available. Consult a tax adviser for your specific position.

Do I need probate to claim inherited property in India as an NRI?

Following the omission of Section 213 of the Indian Succession Act, 1925 by the Repealing and Amending Act, 2025, the mandatory probate requirement has been removed. However, probate remains the most widely accepted route for NRIs to establish rights over Indian immovable property and high-value bank assets. Whether to obtain probate depends on the nature of the assets and the institutions involved. Take qualified Indian legal advice.

Will I owe tax in the UAE on an Indian inheritance?

The UAE does not currently levy personal income tax or capital gains tax on individuals. However, if you hold citizenship or tax residency in a third country such as the US or UK, that country's estate or inheritance tax rules may apply to your worldwide assets regardless of where you live. Consult a qualified cross-border adviser.

Should I have a separate will for my Indian assets?

Most cross-border estate planning specialists recommend a separate India-specific will for Indian assets, drafted in accordance with the applicable Indian succession law. A single global will covering multiple jurisdictions risks validity issues across legal systems. Ensure any multiple wills are co-ordinated by a qualified adviser so they do not inadvertently revoke each other.

Can an NRI repatriate proceeds from the sale of inherited Indian property to a UAE bank account?

Repatriation of sale proceeds from inherited Indian property is subject to FEMA regulations and RBI rules. There are conditions on amounts, permitted account types, and documentation requirements. This is a specialist compliance area - consult a qualified cross-border adviser and an Indian chartered accountant before initiating any remittance.

What documents does a UAE-based NRI typically need to claim an inheritance in India?

Commonly required documents include the death certificate of the deceased, the original will (if one exists), title deeds and property registration records, a succession certificate or probate order where applicable, passport copies, and UAE residence documentation evidencing NRI status. Specific requirements vary by institution, asset type, and state. Confirm requirements with the relevant Indian authority or institution and consult a qualified Indian lawyer.

India Inheritance Rules for NRIs

For UAE-based expats with family roots in India, inheriting property or assets across borders involves a layered set of legal, tax, and procedural requirements that span two jurisdictions. Indian law, the Foreign Exchange Management Act (FEMA), and Indian succession statutes all govern what an NRI can inherit, how title is transferred, and what happens when those assets are eventually sold. This guide sets out the core rules, the probate process, and the tax considerations you need to understand before acting - and why engaging a qualified cross-border adviser is essential at every stage.

Key takeaways

-NRIs can legally inherit almost all types of immovable property in India - including residential property, commercial property, and agricultural land - with no restriction on the number of properties, subject to FEMA regulations.
-India levies no inheritance tax, but capital gains tax applies when an heir eventually sells inherited property; the cost of acquisition is treated as the cost to the previous owner, with indexation benefits available.
-Following the omission of Section 213 of the Indian Succession Act, 1925 by the Repealing and Amending Act, 2025, the mandatory probate requirement has changed - but probate remains the most widely accepted mechanism for NRIs to unlock Indian assets, particularly immovable property.
-A will covering both Indian and overseas assets is strongly recommended for NRI estate planning, and a qualified cross-border adviser should be engaged to ensure it is valid across all relevant jurisdictions.

What Types of Property Can NRIs Inherit in India?

NRIs can inherit almost all types of immovable property in India. Permitted property types include residential flats and houses, commercial buildings and shops, agricultural land, and ancestral property. Importantly, agricultural land can be inherited by NRIs even though they are not permitted to purchase it directly. There is no cap on the number of properties an NRI can hold through inheritance.

The key legal condition is that the property must have been legally owned by the previous owner under the laws applicable at the time of acquisition. An NRI can inherit property from an Indian resident, another NRI, an Overseas Citizen of India (OCI), or a foreign citizen - provided that person had originally acquired the property in accordance with the prevailing foreign exchange law at the time.

These rules operate under the Foreign Exchange Management Act (FEMA) and associated RBI regulations. The practical implication for UAE-based expats is that inheriting Indian property is generally permissible, but holding, renting, or repatriating proceeds from that property involves additional FEMA compliance steps. Consult a tax adviser and a qualified Indian legal practitioner before taking any action on an inherited asset.

Which Laws Govern NRI Inheritance in India?

NRI inheritance of immovable property in India is primarily governed by the Indian Succession Act, 1925 (for non-Hindu, non-Muslim, and non-Parsi individuals), the Hindu Succession Act, 1956 (for Hindus, Buddhists, Jains, and Sikhs), and the Muslim Personal Law (Shariat) Application Act, 1937. The applicable statute depends on the religion of the deceased and, in some cases, the heir.

FEMA and the regulations issued by the Reserve Bank of India (RBI) govern the foreign exchange dimensions of NRI property holding - including repatriation of sale proceeds abroad. Non-compliance with FEMA can have serious consequences, so it is critical that any transfer, sale, or repatriation of inherited assets is structured correctly from the outset.

For Gulf-based expats, there is an additional layer to consider: the UAE's own succession rules may interact with Indian estate planning depending on how assets and domicile are structured. A cross-border adviser who understands both jurisdictions is essential. This article does not constitute legal advice - consult a qualified adviser for your specific situation.

The Probate Process for NRIs: What Changed in 2025-2026

Probate is the court-supervised process of validating a will and authorising the executor to administer an estate. For NRIs, it has historically been the primary mechanism for establishing the right to inherited Indian assets - particularly immovable property and high-value bank deposits.

A significant legal development occurred with the Repealing and Amending Act, 2025, which omitted Section 213 of the Indian Succession Act, 1925. Section 213 had previously required that no right as executor or legatee could be established in any court unless a court of competent jurisdiction in India had granted probate. This requirement applied most acutely in the former presidency towns of Mumbai, Kolkata, and Chennai.

Following this omission, the mandatory probate requirement under Section 213 has been removed. However, probate remains the safest and most widely accepted mechanism for NRIs to unlock Indian assets in practice. Banks, sub-registrars, and property authorities are more likely to act on a probated will than on an unprobated one, particularly for high-value assets. NRIs should take qualified Indian legal advice on whether probate is necessary or advisable for their specific estate.

Where the deceased died intestate (without a will), the applicable succession statute determines the order of heirs, and a court may need to issue Letters of Administration before any heir can act on the estate. Consult a tax adviser and an Indian succession lawyer before initiating any proceedings.

Tax Implications in India: No Inheritance Tax, But Capital Gains Apply

India does not levy an inheritance tax. There is no tax due at the point of receiving an inherited property or asset. This applies equally to NRI heirs inheriting from residents or other NRIs.

However, capital gains tax becomes relevant when an NRI heir decides to sell an inherited property. The cost of acquisition for capital gains purposes is treated as the cost at which the previous owner originally acquired the property - not the market value at the time of inheritance. Indexation benefits are available to adjust for inflation on long-held assets, which can reduce the effective capital gains liability.

Tax Deducted at Source (TDS) obligations also apply to the buyer when an NRI sells Indian property. The buyer is typically required to deduct TDS at applicable rates before remitting the sale proceeds. NRI sellers may be eligible to apply for a lower or nil TDS certificate from the Indian Income Tax authorities. Consult a qualified Indian tax adviser to understand TDS obligations and capital gains treatment specific to your asset type and holding period.

Cross-Border Tax Considerations for UAE-Based Heirs

The UAE does not currently levy personal income tax or capital gains tax on individuals, which means UAE-resident NRIs do not face a UAE-level tax charge on inheriting Indian assets or receiving proceeds from their eventual sale. However, this does not eliminate all cross-border tax exposure.

For NRIs who hold citizenship or tax residency in a third country - such as the United States or the United Kingdom - additional obligations may arise. US citizens and resident aliens are subject to US federal estate tax on worldwide assets; the federal exemption threshold is approximately $13.6 million (2026), though this figure is subject to change following sunset provisions after 2025 that could significantly reduce the exemption. UK-domiciled individuals face UK inheritance tax at 40% on estates above £325,000. These figures are sourced from publicly available guidance and should be verified with the relevant authority.

The interaction between Indian capital gains tax on a sale, any applicable home-country tax, and Double Taxation Avoidance Agreements (DTAAs) that India has entered into with various countries is a specialist area. Never rely on general guidance for actual filings. Consult a qualified cross-border adviser who can assess your specific residency status, domicile position, and applicable treaty provisions.

Estate Planning: Wills, Cross-Border Asset Coverage, and NRI Considerations

A will is the most direct way for an NRI to control how Indian assets are distributed on death. Under Indian law, a will can cover immovable property situated in India, movable assets held in Indian bank accounts, and financial investments held in India. It is generally advisable to prepare a separate India-specific will for Indian assets, drafted in accordance with the Indian Succession Act or the applicable personal law, alongside any will prepared for UAE or other overseas assets.

Drafting a single global will that attempts to cover assets in multiple jurisdictions carries risk - a will valid under UAE law may not automatically satisfy the formal requirements for enforcement in India, and vice versa. Specialist NRI estate planning advice should be taken to ensure wills in each jurisdiction are co-ordinated and do not inadvertently revoke each other.

Registering a will with the Sub-Registrar in India is not mandatory but is widely recommended as it reduces the risk of the document being challenged or lost. Executor appointment, witness requirements, and attestation rules differ by statute and religion. Consult an Indian succession lawyer and a qualified cross-border adviser to ensure your estate plan is legally sound across all relevant jurisdictions.

Practical Steps for UAE-Based NRIs Handling an Indian Inheritance

When a family member in India passes away, the immediate priorities for a UAE-based heir are: obtaining the death certificate (registered with the relevant Indian municipal authority), locating the original will if one exists, and identifying all assets - immovable property, bank accounts, investments, and any liabilities forming part of the estate.

If a will exists, assess with an Indian lawyer whether probate or Letters of Administration is advisable given the assets involved and the institutions holding them. Gather all supporting documents - title deeds, property registration records, succession certificates where applicable, and identity documents including your NRI status evidence (passport, UAE residence visa).

For immovable property, the mutation of property records (updating the land registry or municipal records to reflect the new owner) is a separate process from probate and must be completed with the local revenue authority or sub-registrar. For NRI bank accounts and investment holdings, the relevant institution will specify its own documentation requirements. Throughout this process, maintain records of all legal costs and adviser fees, as these may be relevant to future capital gains calculations. Consult a tax adviser at each stage.

Frequently asked questions

Can an NRI living in the UAE inherit agricultural land in India?: Yes. NRIs can inherit agricultural land in India through succession, even though they are not permitted to purchase it directly. The inheritance must comply with FEMA regulations and the land must have been legally owned by the previous owner. Consult a qualified Indian lawyer to confirm the specific conditions applicable to your situation.
Is there an inheritance tax in India?: India does not levy an inheritance tax. No tax is due at the point of inheriting property or assets. However, capital gains tax will apply if and when an NRI heir sells the inherited property. The cost of acquisition for capital gains purposes is the cost to the previous owner, with indexation benefits available. Consult a tax adviser for your specific position.
Do I need probate to claim inherited property in India as an NRI?: Following the omission of Section 213 of the Indian Succession Act, 1925 by the Repealing and Amending Act, 2025, the mandatory probate requirement has been removed. However, probate remains the most widely accepted route for NRIs to establish rights over Indian immovable property and high-value bank assets. Whether to obtain probate depends on the nature of the assets and the institutions involved. Take qualified Indian legal advice.
Will I owe tax in the UAE on an Indian inheritance?: The UAE does not currently levy personal income tax or capital gains tax on individuals. However, if you hold citizenship or tax residency in a third country such as the US or UK, that country's estate or inheritance tax rules may apply to your worldwide assets regardless of where you live. Consult a qualified cross-border adviser.
Should I have a separate will for my Indian assets?: Most cross-border estate planning specialists recommend a separate India-specific will for Indian assets, drafted in accordance with the applicable Indian succession law. A single global will covering multiple jurisdictions risks validity issues across legal systems. Ensure any multiple wills are co-ordinated by a qualified adviser so they do not inadvertently revoke each other.
Can an NRI repatriate proceeds from the sale of inherited Indian property to a UAE bank account?: Repatriation of sale proceeds from inherited Indian property is subject to FEMA regulations and RBI rules. There are conditions on amounts, permitted account types, and documentation requirements. This is a specialist compliance area - consult a qualified cross-border adviser and an Indian chartered accountant before initiating any remittance.
What documents does a UAE-based NRI typically need to claim an inheritance in India?: Commonly required documents include the death certificate of the deceased, the original will (if one exists), title deeds and property registration records, a succession certificate or probate order where applicable, passport copies, and UAE residence documentation evidencing NRI status. Specific requirements vary by institution, asset type, and state. Confirm requirements with the relevant Indian authority or institution and consult a qualified Indian lawyer.