Property inherited from parents: Check if you need to pay taxes on it

Inheriting property in India comes without inheritance tax, but beware of future taxation responsibilities. Local municipal bodies will impose an annual property tax. If you choose to rent out your inherited estate, remember that the rental income is taxable, albeit with possible deductions available. Should you sell the property, capital gains tax will apply, calculated on the original owner’s acquisition cost, with distinct rates for both short-term and long-term profits.