Inheritance Laws in India
Inheritance laws in India are complex due to the country’s diverse legal systems, which include Hindu law, Muslim law, Christian law, Parsi law, and secular law (for those who do not follow a religious personal law). The applicable inheritance laws depend on the religion of the deceased person. Below is an overview of inheritance laws in India based on the different personal laws:
1. Hindu Inheritance Laws
Hindu inheritance laws apply to Hindus, Buddhists, Jains, and Sikhs in India. The law governing inheritance for Hindus is primarily found in the Hindu Succession Act of 1956.
Testate Succession (Hindu Law)
- If a Hindu has made a valid will, the assets will be distributed according to the terms of the will, subject to restrictions for the forced heirship of certain family members (such as the spouse and children).
- The will must be executed following the legal requirements (written, signed, and witnessed).
- A Hindu person has the right to leave their estate to anyone, but the spouse and children are entitled to a compulsory share, known as "coparcenary" share, under certain circumstances.
Intestate Succession (Hindu Law)
- If the deceased dies without a will (intestate), the Hindu Succession Act governs how the estate is divided.
- The estate is divided between Class I heirs (which includes the spouse, children, and mother), and if there are no Class I heirs, it goes to Class II heirs (which includes more distant relatives like father, brothers, and sisters).
- The estate is divided as follows:
- Children (sons and daughters) inherit equally, along with the wife (spouse).
- If there are no children, the spouse inherits the estate.
- The property is divided into equal shares.
Hindu Succession (Amendment) Act of 2005:
This amendment gave daughters equal rights to inherit ancestral property, making daughters coparceners in the family’s ancestral property (previously, only sons had the right).
Property Division under Hindu Law:
- In case of ancestral property, the son has a right to a share in it by birth. Ancestral property is property inherited for at least four generations in the male line of the family.
- Self-acquired property can be bequeathed freely by will.
2. Muslim Inheritance Laws
Muslim inheritance in India is governed by Sharia Law, which has its own set of rules for succession. There are two main types of inheritance under Muslim law:
- Sunni Law
- Shia Law
Testate Succession (Muslim Law)
- Muslims can make a will, but the will must be in writing, and it can only dispose of one-third of the estate. The remaining two-thirds of the estate are distributed according to the rules of Sharia law.
Intestate Succession (Muslim Law)
- If a Muslim dies intestate, the estate is divided according to the Sharia rules of inheritance. The estate is divided among the heirs based on fixed shares as prescribed by Islamic law.
- Sons inherit double the share of daughters.
- Widows inherit one-eighth of the estate if there are children, or one-fourth if there are no children.
- The inheritance system also allows for inheritance by the father, mother, siblings, and other close relatives.
The main principles of inheritance are:
- Male heirs (e.g., sons) inherit twice the share of female heirs (e.g., daughters).
- Husband inherits one-fourth of the estate if the deceased has children and one-half if there are no children.
Shia Muslims:
Shia Muslims follow a slightly different system in terms of the proportion of inheritance. For instance, daughters might receive a larger share compared to Sunni law.
3. Christian Inheritance Laws
Christian inheritance laws in India are governed by the Indian Succession Act of 1925 for Protestants and Roman Catholics, while Goan Christians follow a different set of rules due to the Portuguese Civil Code.
Testate Succession (Christian Law)
- Christians in India can make a will to dispose of their estate as they see fit. A will must be in writing and signed by the testator.
- The will can be contested by legal heirs if they feel that they have been unfairly disinherited or if the will does not adhere to legal formalities.
Intestate Succession (Christian Law)
- When a Christian dies intestate, the estate is divided according to the Indian Succession Act of 1925.
- The widow and children are entitled to the estate. If the deceased has a surviving spouse and children, the estate is divided equally.
- If there is no surviving spouse, the estate goes to the children.
- If the deceased had no children, the estate will pass to the parents, and if the parents are not alive, it will go to siblings.
4. Parsi Inheritance Laws
Parsis in India are governed by the Parsi Succession Act of 1865. The inheritance system for Parsis is similar to Christian laws, with some specific provisions:
Testate Succession (Parsi Law)
- Like Christians, Parsis can make a will to dispose of their estate as per their wish.
- If a person dies intestate, the estate will be distributed under the rules of the Parsi Succession Act.
Intestate Succession (Parsi Law)
- In the absence of a will, the estate of a Parsi person is divided between the spouse and the children.
- If there are children, they share the estate equally, and the surviving spouse receives a portion as well.
5. Secular Inheritance (Indian Law)
For those who do not belong to any particular religious group or follow the Special Marriage Act (e.g., interfaith marriages), the Indian Succession Act of 1925 applies.
Testate Succession (Secular Law)
- Under the Indian Succession Act, individuals can make a will to distribute their property as they see fit.
- The will must be executed according to legal formalities (in writing, signed, and witnessed).
- If the deceased has a valid will, the estate will be distributed in accordance with the provisions of that will.
Intestate Succession (Secular Law)
- If the deceased has not made a will, the estate is divided among the legal heirs:
- First priority: Spouse, children, and mother.
- Second priority: Father, siblings, and other close relatives.
- If there are no surviving relatives, the estate goes to the state.
6. Inheritance Tax
India does not currently have an inheritance tax or estate duty. In 1985, the estate duty tax was abolished. However, capital gains tax may apply when inherited assets are sold, depending on the type of asset and the duration of ownership.
7. Disputes Over Inheritance
Inheritance disputes are common in India, and they can arise for a variety of reasons:
- Disputes over the validity of a will.
- Disagreements over the division of property among heirs.
- Claims for a larger share of the estate, especially in cases of forced heirship laws (such as Hindu law or Muslim law).
- Disputes involving ancestral property and self-acquired property.
Such disputes are typically resolved through the civil courts in India, although arbitration and mediation are also options to settle inheritance disputes.
Conclusion
Inheritance laws in India are governed by religious laws (Hindu, Muslim, Christian, Parsi) or the Indian Succession Act for those outside specific religions. These laws provide clear frameworks for testate and intestate succession, but disputes are common, especially in the case of forced heirship. The absence of an inheritance tax simplifies the process, although there may be capital gains taxes on inherited assets when sold. Understanding the specific laws applicable to one's religion or marital status is crucial for estate planning in India.
RELATED Blog
0 comments