Dealing with the estate of a deceased family member who owned assets in India can be a complex and emotional process, particularly when you are based in the UK. Indian succession laws, probate procedures, and cross-border tax obligations all need to be carefully managed.
Atwal Financial helps UK-based families navigate the financial complexities of inheriting and managing assets in India. This guide outlines the key legal and financial considerations.
Understanding Indian Succession Law
India does not have a single unified succession law. The applicable law depends on the religion and domicile of the deceased:
- Hindu Succession Act: Applies to Hindus, Buddhists, Jains, and Sikhs
- Indian Succession Act: Applies to Christians and Parsis, and to intestate succession for all communities in some cases
- Muslim Personal Law: Governs succession for Muslims
If the deceased left a valid will, the distribution follows the will. Without a will, assets are distributed according to the applicable succession law.
Obtaining Probate in India
Probate is the legal process of validating a will and authorising the executor to distribute the estate. In India:
- Probate is mandatory in Mumbai, Kolkata, and Chennai (under the Indian Succession Act)
- In other cities, probate may not be legally required but is often requested by banks and property registrars
- A UK-granted probate is not automatically recognised in India — you may need to obtain a separate Indian probate or have the UK probate re-sealed
The Probate Process
- File a petition in the relevant District Court or High Court
- Submit the original will, death certificate, and supporting documents
- The court publishes a citation and waits for objections (typically 30 days)
- If no objections, probate is granted
- The executor can then manage and distribute the assets
The process can take 6 months to 2 years depending on the complexity and court jurisdiction.
Succession Certificate
If there is no will, heirs need to obtain a Succession Certificate from the Indian courts. This certificate authorises the legal heirs to claim the deceased's assets, including bank accounts, investments, and debts owed to the deceased.
Tax Implications of Inheriting Indian Assets
India does not currently levy inheritance tax. However, several tax obligations arise:
- Income from inherited assets: Rental income, interest, and dividends from inherited assets are taxable in India
- Capital gains on sale: If you sell inherited property, capital gains tax applies. The cost basis is the cost to the original owner (for indexation purposes)
- UK Inheritance Tax: UK-domiciled individuals may be liable for UK IHT on worldwide assets, including those in India
The interaction between Indian and UK tax obligations requires specialist cross-border financial planning.
Repatriating Inherited Assets to the UK
Once probate or succession has been granted, inherited funds can be transferred to the UK through an NRO account. The process requires tax clearance certificates and compliance with RBI regulations. Our guide on NRI fund repatriation covers this process in detail.
Practical Steps for UK-Based Heirs
- Obtain the death certificate and locate the will (if any)
- Identify all assets in India — property, bank accounts, investments, gold
- Engage an Indian lawyer to handle probate or succession proceedings
- Obtain PAN card and open an NRO account if you don't already have one
- File Indian tax returns as required
- Complete the repatriation process once assets are liquidated
For property-related inheritance, additional considerations around encumbrance certificates and property registration apply.
Frequently Asked Questions
Is there inheritance tax in India?
No, India does not currently impose an inheritance tax. However, income and capital gains from inherited assets are taxable.
Can a UK probate be used in India?
A UK-granted probate is not automatically valid in India. You may need to apply for Indian probate or have the UK probate re-sealed through the Indian courts.
How long does Indian probate take?
Typically 6 months to 2 years, depending on the jurisdiction and whether there are any objections or disputes.
Do I need to visit India for probate?
Not necessarily. A Power of Attorney can be granted to a trusted person or lawyer in India to handle the proceedings on your behalf.
What if there is no will?
If there is no will, the applicable succession law determines how assets are distributed. A Succession Certificate from the court is required to claim the assets. Contact our team for guidance on managing inherited assets in India.
