Estate and Inheritance Tax Exposure Across Two Countries, Simplified
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Australia does not currently impose a specific inheritance tax or estate tax on assets passed down after death, which surprises some people familiar with systems in other countries where such a tax is standard. India similarly does not have a dedicated inheritance tax at present, though this has not always been the case historically and policy settings can change over time.
The absence of a dedicated inheritance tax in both countries does not mean cross border inheritance is entirely free of tax consideration. Other taxes, such as capital gains tax triggered when an inherited asset is eventually sold, can still apply, and the rules governing how an inherited asset's original cost base is determined can be genuinely complex when the asset was held overseas.
Family structures involving assets in both countries add further layers, since property, shares, or other holdings inherited from a relative in India may need to be formally transferred, registered, and potentially valued according to Indian legal processes before an Australian resident heir can deal with the asset further, quite separate from any tax question.
Because estate matters intersect with succession law, property law, and taxation all at once, and because the absence of a specific inheritance tax does not mean there is nothing to consider, families with assets spanning both countries are generally well advised to seek guidance well before it becomes urgent rather than during an already difficult time.