Inheritance Tax

Presently, India does not impose an inheritance tax on the transfer of assets from a deceased individual. Meaning any inherited property, asset, or money is not treated as income and therefore is tax-free. However, any income generated from inherited assets is subject to taxes, such as capital gains tax on the sale of an inherited property. 

Any income earned from an inherited asset must be reported under "Income from Other Sources" while filing your ITR in India. In a nutshell, whether the inherited asset is cash, gold, or property, the heir or recipient is not liable to pay any tax simply for inheriting the asset, as the Indian inheritance tax law was abolished in 1985.