There is no capital gains tax on the inheritance of property in India.  However, if you want to avoid capital gain taxes on sale of inherited property, you can opt for any of the following steps: 1. When the amount of long-term gain is invested for the purchase/construction of new residential house property in India, a deduction to the extent of the gains invested shall be available. The new property should be purchased either one year before or two years after the date of transfer or the property should be constructed within three years from date of transfer. 2. The gains can be temporarily invested under the ‘capital gains account scheme’ by opening an account with specified banks or institutions in India. The gains can be held in this account for three years within which period the amount needs to be withdrawn for purchase or construction of the new residential property 3. Capital gain amount to the extent of 50 lakh may also be invested in specified bonds within six months from the date of transfer of the long term capital asset to obtain a deduction from capital gains tax