Inheriting Property in Bihar as an NRI: Succession, Mutation and Repatriation

What an NRI may inherit

Under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, an NRI or OCI cardholder may inherit any immovable property in India, including agricultural land, plantation property and farmhouses, from a person resident in India. Purchase of these three kinds of property is not permitted, but inheritance is.

Establishing title

• With a will: probate or letters of administration where required, or proof of the will in mutation proceedings
• Without a will: heirs under the applicable personal law, such as the Hindu Succession Act, 1956
• Legal heir or family member certificate, and a succession certificate for debts and securities
• Partition deed or family settlement among co-heirs, registered where required

Mutation in Bihar

After title passes, the heir should apply for mutation (dakhil-kharij) through the Bihar revenue department's online system, supported by the death certificate, title documents and heirship proof. Mutation updates revenue records; it does not by itself create title, but it is essential for rent receipts and later sale.

Managing from abroad

Most steps can be handled through a power of attorney executed abroad before the Indian mission or a notary with apostille, and adjudicated for stamp duty in India within the prescribed time. See the firm's article on NRI property and power of attorney.

Selling and repatriating

Sale proceeds are credited to an NRO account. The RBI permits remittance from NRO accounts of up to USD 1 million per financial year, subject to tax payment and a chartered accountant's certificate in Forms 15CA and 15CB. Consult your CA on capital gains and TDS before the sale.