Mutation and Sale of Inherited Property by NRIs in Kolkata

Mutation and Sale of Inherited Property by NRIs in Kolkata

An NRI heir in Kolkata usually sells inherited property in this order: prove who the heirs are, mutate the property in the Kolkata Municipal Corporation (KMC) records, obtain a lower tax deduction certificate if appropriate, register the sale, have the buyer deduct tax under Section 393(2) of the Income-tax Act 2025 (earlier Section 195), and move the proceeds to the NRO account. PropResolve helps families line these steps up.

The Kolkata Sequence at a Glance

Inherited property in Kolkata is often old, shared and tenanted, so the order of steps matters more than usual. A sale that starts before the records are in order tends to stall at the buyer’s due diligence. This is the sequence most families follow:

1. Settle who the legal heirs are and what each one will do: keep, sell or step aside.
2. Gather the death certificate, the Will if there is one, and title papers.
3. Obtain the heir document the buyer and the municipal office will accept.
4. Apply for mutation at KMC so the heirs appear as the assessees.
5. Appoint an attorney holder if an heir is abroad and cannot attend.
6. Apply for a lower or nil tax deduction certificate before the sale is signed, if the heirs want it.
7. Execute and register the sale deed, with the buyer deducting tax.
8. Credit the proceeds to the NRO account and remit abroad within the permitted limit.

Each step has local detail. The rest of this post goes through them in the order they happen, with the Kolkata-specific points marked.

Heir Proof in Kolkata and the Probate Question

A legal heir certificate shows who the heirs are. It is evidence for offices and buyers, not a court order, and it usually does not by itself transfer title. For a Kolkata property, our page on the NRI legal heir certificate in Kolkata explains how an application is handled from abroad.

Kolkata has a particular history with probate. Section 213 of the Indian Succession Act, 1925 once made probate necessary before a Hindu, Buddhist, Sikh or Jain Will could be relied on in court where the Will was tied to the presidency towns of Bombay, Calcutta and Madras. Kolkata (then Calcutta) was within that group. The Repealing and Amending Act, 2025, which received assent on 20 December 2025, removed Section 213. Probate is therefore no longer compulsory by statute for these Wills.

That does not mean every office has stopped asking. Many older Kolkata lawyers, banks and registrars grew up with probate as the safe default. A buyer’s lawyer or the buyer’s lender may still ask for it, or ask for something equivalent. Ask them what they will accept and why. A registered Will, a death certificate and a clear heir list are often enough, but the answer depends on the institution.

One more Kolkata feature to keep in mind: West Bengal Hindus are traditionally associated with the Dayabhaga school for joint family property, which differs from the Mitakshara school followed in much of India. For an individual’s own property where the owner died after 1956 without a Will, succession is governed by the Hindu Succession Act, 1956. If the property came from a joint family, a lawyer should check how it was held before the shares are fixed.

KMC Mutation, Step by Step

Mutation records the new owners in the municipal assessment register. It decides who receives the property tax demand and who is treated as the assessee. It is a record for municipal purposes. It does not decide ownership, but buyers and their lawyers almost always want it completed before they commit to a purchase.

The procedure at KMC can be updated, so confirm the current forms and portal with the office. The usual shape is as follows.

1. Clear property tax dues. KMC typically expects the tax to be paid up to date and may ask for a no-outstanding certificate from the assessment and collection department.
2. File the application. The application is made on the prescribed form, with the deed or document on which the heirs rely and the list of heirs.
3. Attach the heir documents. Usually the death certificate, a recent tax receipt, identity proof of every heir, and an affidavit or no-objection from the heirs who do not want to be recorded as owners.
4. Inspection. A KMC inspector may visit to confirm the property, how it is used and its size.
5. Entry in the assessment register. The heirs’ names are entered, an assessee number is allotted where one is needed, and the annual valuation is communicated to the owners.

If the heirs agree that only one of them will be recorded, expect the office to ask for a registered document or a clear written consent from the rest. If there is a dispute among heirs, the office may decline to proceed until it is resolved. Our guide on resolving disputes among legal heirs covers that situation.

Not every Kolkata-area property is within KMC. Property in the surrounding municipalities or in rural pockets is mutated through the relevant municipality or the block land and land reforms office. Check the correct authority before filing, because an application sent to the wrong office wastes months.

What Is Different About Selling Inherited Property in Kolkata

The legal framework for a sale is national, but Kolkata property carries some features that affect how smoothly a sale goes.

• Old buildings and tenants: many inherited houses and flats are occupied by long-standing tenants. A buyer will want to know who is in occupation and on what terms, and the heirs may not be able to give vacant possession.
• Several co-owners: a property passing to three or four heirs needs every co-owner’s signature on the sale deed, or a valid power of attorney for each absent one.
• Assessee names that lag behind: assessment records in older properties may still show a grandparent. Several mutations may be needed, one generation at a time.
• Apartment owners’ associations: a flat in an association-managed building may need a no-dues letter before the sale.
• Documentary history: older chains of title can have gaps. A buyer’s lawyer will read them closely, so it is better to find gaps early.

If the property includes agricultural land on the outskirts, the same FEMA rule applies as elsewhere: an NRI or OCI can inherit it but cannot purchase it, and a later sale is generally only to a resident Indian citizen. Treat that land as a separate transaction.

Sale Steps Once Mutation Is in Place

With the records updated, the sale itself follows a familiar path. Registration of a sale deed is done through the registration offices in West Bengal, and the state has an online system for submitting forms and paying duty. The office that covers the property is the one you will deal with, so confirm which one before booking.

1. Agree the terms in writing. A sale agreement records the buyer, the sale consideration, the payment stages and what happens if the deal fails.
2. Buyer’s due diligence. The buyer’s lawyer checks the title chain, the heir documents, encumbrances and tax receipts.
3. Tax planning before signing. Decide whether to apply for a lower deduction certificate, because the application has to be made and processed before the buyer pays.
4. Stamp duty and registration. Duty is based on market value as assessed with reference to the state’s valuation guidelines, and a registration levy is collected separately. Check current figures on the official West Bengal portal.
5. Execution and registration. All heirs, or their attorney holders, sign and the deed is registered.
6. Tax deduction and handover. The buyer deducts tax from the payment to each seller and deposits it with the government.
7. Post-sale mutation. The buyer applies to KMC to record the change of ownership.

For an heir who cannot attend, a power of attorney signed abroad and authenticated for India is the usual tool. Our page on the NRI power of attorney explains what such a document should cover. Offices differ on whether they want a personal appearance or video verification, so confirm with the registration office in advance.

TDS Under Section 393(2) and Capital Gains

Inheriting property is not taxed in India, because India has no inheritance tax. Tax comes at the sale. When an NRI sells, the buyer must deduct tax at source under Section 393(2) of the Income-tax Act 2025 (earlier Section 195 of the 1961 Act). The Act applies from 1 April 2026.

Unless a certificate says otherwise, the buyer deducts tax on the whole sale consideration at the rate that applies to the type of gain, with additional levies as applicable. Because the deduction is not tied to the actual profit, it can be a large part of the amount an heir expected to receive.

The answer is a lower or nil deduction certificate. The application is made in Form 128 (earlier Form 13), and the certificate lets the buyer deduct tax at a rate closer to the actual gain. It needs to be in hand before the buyer makes the payment.

A few practical points:

• Each heir separately. Deduction is generally worked out per seller on that seller’s share, using the seller’s own PAN.
• Buyer’s identification number. The buyer needs a tax deduction account number, although a relaxation for individual buyers was announced from 1 October 2026. The buyer’s adviser should confirm what is required on the date of the sale.
• Gain is worked out from the previous owner. The previous owner’s purchase value and holding period carry over to the heir. That is why a property held for many decades by a parent is usually treated as long-term.
• Reinvestment exemptions. Certain gains can be reduced if the proceeds are reinvested as the law allows. Use a chartered accountant to check eligibility and deadlines.

Our guide to TDS on sale of inherited property by an NRI goes into the calculations more fully. We do not state rates here because they depend on the type of gain and the date of acquisition by the previous owner.

Repatriation Through the NRO Account

Sale proceeds from inherited property are credited to the heir’s NRO account in India. From there, remittance abroad is permitted up to USD 1 million per financial year, after taxes have been paid and the bank has received the required papers.

• Remittance forms: Forms 145 and 146 (earlier Forms 15CA and 15CB), the second being a chartered accountant’s certificate.
• Proof of the source: the sale deed, the heir document, and proof of tax paid or deducted.
• Bank procedure: the authorised dealer bank has its own checklist, so ask for it before the sale closes.
• Several heirs: each NRI heir has their own limit and their own paperwork for their own share.

The limit applies per financial year, so a large sale can be remitted over more than one year. Keep the NRO account active and the records tidy. Our overview of NRI inheritance repatriation covers the rules in more detail.

Example: A South Kolkata Flat and a Registered Will

Consider an anonymous family. A father living in South Kolkata dies leaving a registered Will. The flat goes to his two children: a son in London and a daughter in Kolkata. The Will was never taken through probate.

The daughter runs the process on the ground. The son signs a power of attorney in London that is authenticated for India and sends it to her. Their lawyer applies to KMC for mutation, attaching the death certificate, the Will, tax receipts and heir details. The assessment records are updated in both names after the inspection.

The family finds a buyer. The buyer’s bank asks for probate. The family’s lawyer explains that Section 213 has been removed, shares the registered Will and the heir documents, and offers a joint declaration from both heirs and an indemnity. Whether a lender accepts this varies, and in this example the lender takes time but agrees after a legal opinion.

Before signing the sale agreement, the son’s adviser applies for a lower deduction certificate in Form 128 based on the estimated gain. The sale deed is registered once the certificate arrives. The buyer deducts tax from each heir’s share as the certificate directs. The son’s proceeds go into his NRO account, and his chartered accountant prepares the remittance forms.

The whole transaction takes several months. The step that took longest was the lender’s comfort on the Will, not the municipal mutation. The family’s best decision was to deal with probate, the tax certificate and the power of attorney in parallel instead of one after another.

Checklist for an NRI Heir Selling in Kolkata

• Death certificate and the Will, if there is one, with details of the executor
• Heir document accepted by KMC and the buyer, with a list of all legal heirs
• Title papers, previous deeds and recent KMC property tax receipts
• No-outstanding certificate from the KMC assessment and collection department
• Identity proof, PAN and passport copies for each heir, with OCI card where relevant
• Affidavits or no-objection letters from heirs who will not be recorded as owners
• Authenticated power of attorney for each heir who cannot attend
• Details of any tenants, with agreements or rent receipts
• Application papers for the lower deduction certificate in Form 128
• NRO account details and the remittance forms the bank requires
• Association no-dues letter for a flat

PropResolve works with top law firms across India, so the Kolkata steps can be coordinated with work in other cities if the estate spans more than one.

Frequently Asked Questions

How do I get inherited property mutated in my name in Kolkata?

Apply to the Kolkata Municipal Corporation with the death certificate, the heir document, recent tax receipts and identity proof of all heirs. Expect to clear dues and to attach consents from heirs who will not be recorded. An inspection may follow. Confirm current forms and procedure with the office before filing.

Is probate compulsory for a Will in Kolkata?

No. Section 213 of the Indian Succession Act, which once applied to Calcutta, was removed by the Repealing and Amending Act, 2025. Probate is not compulsory by statute anywhere in India. A buyer, bank or registrar may still ask for it in practice, so ask what they will accept and why.

How is TDS worked out when an NRI sells inherited property?

The buyer deducts tax under Section 393(2) of the Income-tax Act 2025 (earlier Section 195), generally on the whole sale consideration at the rate for the type of gain, with applicable additional levies. A lower or nil certificate in Form 128 can reduce it. We state no rate here, so confirm the figure with a chartered accountant.

Can an NRI repatriate the sale proceeds of inherited property?

Yes. Proceeds are credited to the NRO account and can be remitted abroad up to USD 1 million per financial year, after tax is paid and the bank receives the required forms and a chartered accountant’s certificate. The limit applies to each person, so every heir has their own limit and their own paperwork for their share.

Do I have to visit Kolkata to sell inherited property?

Usually not. An NRI heir can sign a power of attorney authenticated for India and let a trusted attorney holder sign and register on their behalf. Some offices may ask for a personal appearance or video verification, so confirm with the registration office and the municipal office before you plan your travel.

Is there tax on inherited property in India?

India has no inheritance tax, so receiving property is not taxed. Capital gains tax arises only when the property is later sold. The previous owner’s purchase value and holding period carry over to the heir, which usually helps the gain qualify as long-term. Non-resident sellers also face tax deduction at source on the sale.

Related Reading

• Mutation and Sale of Inherited Property by NRIs
• FEMA Rules for NRIs Selling Inherited Property in India
• Succession Certificate in West Bengal

Conclusion

Selling inherited property in Kolkata is a sequence of small, ordinary steps: heir proof, KMC mutation, a tax certificate if it helps, a registered sale deed, the buyer’s tax deduction and the NRO remittance. Run them in parallel where you can, and ask whether probate is really needed before waiting for it. If you would like a sequence mapped to your own property and family, see our NRI property inheritance service and Book a 20-minute assessment.