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How do I deal with a property inherited abroad while residing in Vadodara as an NRI?

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(@Kiara Bindra)
Joined: 4 weeks ago
[#1722]
I am an NRI based in Vadodara and have inherited property abroad. What legal steps should I take to secure my rights over the inherited property?

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(@advocate-mudit-pratap)
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Joined: 2 months ago

This question has multiple legal dimensions — the law of the country where the foreign property is located, India's FEMA framework, and India's tax disclosure obligations — and the correct approach depends on where the property is, what you intend to do with it, and your current tax residency status in India.

The inheritance of foreign immovable property is governed by the laws of the country where the property is located, not by Indian law. Your first step is to engage a lawyer in that country to establish your heirship under that country's succession law, obtain probate or letters of administration (or the equivalent), and formally register the inheritance. This process is entirely separate from anything that happens in India. Where the property is to be sold, the remittance of sale proceeds to India must comply with FEMA (Foreign Exchange Management Act) regulations — NRIs can remit sale proceeds from inherited foreign property to India through specified FEMA channels, but the amount and manner must be correctly structured. If you are selling a foreign inherited property and remitting proceeds to your Vadodara account, consult a FEMA-specialist advocate or CA before proceeding.

The Indian obligations that arise are primarily tax disclosure-based. If you are a tax resident of India in any year — which depends on your days of presence — you must disclose foreign assets in Schedule FA of your Indian Income Tax Return under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015. Failure to disclose attracts severe penalties. If the foreign property generates rental income, that income must be declared in your Indian return (subject to any Double Tax Avoidance Agreement between India and the country of the property's location). The NRI property and taxation advocates at the Vadodara panel of Aapka Legal Advice can coordinate with foreign counsel, advise on FEMA-compliant remittance of sale proceeds to Vadodara, and ensure your Indian tax filings correctly reflect the foreign inheritance without triggering penalties.

Obtain the foreign probate or inheritance certificate and have it apostilled — authenticated under the Hague Convention — as this is required for most formal uses of the document both abroad and for Indian regulatory purposes.


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