Money inherited from a resident Indian parent (or gifted by a relative) can be repatriated to your overseas bank, but the path has two extra steps over basic NRO: probate / succession certificate (legal transfer of ownership) and an awareness that inheritance receipt is non-taxable but income from it IS.
Taxation: receipt vs income
- Inheritance receipt itself: NOT taxable. India has no inheritance tax. You receive the assets / cash with zero tax liability on the receipt.
- Income from inherited assets: fully taxable to you. Inherited shares throw dividends → taxable. Inherited property earns rent → taxable. Inherited FD accrues interest → taxable.
- Gift from non-relative > ₹50,000: fully taxable as "income from other sources" at your slab rate.
- Gift from relative (parent, sibling, spouse): tax-free regardless of amount.
The 5-step repatriation path
Get probate or succession certificate
If there's a will: probate the will at the High Court of the parent's last residence jurisdiction. Takes 3-6 months typically. If no will: apply for succession certificate at District Court — similar 3-6 month timeline. Lawyer fees: ₹25K-1.5L depending on city + complexity. Bank will not release funds to you without this.
Bank releases inherited funds → your NRO
Submit succession certificate / probate copy + your KYC + the deceased's account number. Bank transfers balances to your NRO. For inherited shares: dematerialize into your demat account. For inherited property (if you keep it): it stays property until sold (then see property sale path).
Confirm tax position — no tax on receipt, but accrued interest may have TDS
The inherited amount itself is not taxable. BUT any interest accrued in the deceased's account up to date of death is taxable in the deceased's hands (filed via legal heir's account). Interest accruing AFTER you inherit is taxable to YOU. Pre-clean these before 15CB.
CA issues Form 15CB
Same Form 15CB as basic NRO repat. CA confirms taxes on accrued income are paid. Cost: ₹5,000-10,000 (slightly higher than basic NRO because CA reviews succession docs).
File 15CA → bank wires to overseas
Subject to $1M / FY cap — separate from your own NRO cap. So you could in theory repatriate $1M from your own NRO + $1M from inherited NRO in the same year. Timeline: 10-20 working days because banks scrutinize inherited money more carefully.
The "I have NRI siblings — split the inheritance" case
Common scenario: parent's bank account gets distributed across 2-3 NRI children. The path:
- Each child gets their share into their own NRO account (not a joint account from the start)
- Each child does their own 15CA / 15CB independently for their share
- Each child uses their own $1M / FY cap — separate per person
- Don't pool funds in one sibling's account hoping to "transfer later" — creates a fresh gift / repatriation problem
What it actually costs (₹1 cr inheritance example)
- Lawyer for probate / succession: ₹30,000-1,50,000 (city-dependent)
- CA for 15CB on inherited repat: ₹5,000-10,000
- Bank repat charges: ₹2,000-5,000 (typically higher than basic NRO)
- FX spread: 0.5-1.5% of remitted amount
- Total: ₹40,000-1,70,000 on a $120K wire
- Most of the cost is the probate — not the repat itself