India taxes nothing on the inheritance
Start with the Indian side, which is simple. India has no inheritance tax, no estate tax and no gift tax as a separate levy. Receiving an inheritance is not income and is not taxed in your hands, and a gift from a close relative is exempt too. So when Indian assets, a bank balance, shares, a property, pass to you on a parent's death, there is no Indian tax on the transfer itself.
What India does tax, later, is the income those assets go on to earn once they are yours, rent, interest, dividends, and any gain when you eventually sell. But the inheritance event, the passing of the assets to you, is free of Indian tax. That is the same whether you live in India or the Netherlands.
Dutch inheritance tax follows the deceased, not you
The Dutch side is where people expect a bill, and usually there is none. Dutch inheritance tax and gift tax are charged by reference to where the person who died, or who made the gift, was resident, not where the heir or recipient lives. So the key question is not that you live in the Netherlands; it is where your parent lived.
If your parent was resident in India, and not a Dutch national, they are outside the Dutch inheritance-tax net, so no Dutch inheritance tax arises on what you inherit from them, however you are taxed on the assets afterwards. Combined with India charging nothing, the inheritance itself is tax-free in both countries. This is a genuinely clean outcome, and it surprises people who assume their Dutch residence pulls the inheritance into Dutch tax. It does not; the residence that matters is the deceased's.
The one trap, and what is taxed later
There is a single trap to know. The Dutch rules deem a Dutch national who has emigrated to remain resident for inheritance and gift tax for 10 years after leaving. So an Indian-origin person who took Dutch nationality and then moved back to India stays within the Dutch inheritance-tax net for a decade, and a gift or inheritance from them could be Dutch-taxable in that window. This targets Dutch nationals specifically, so it does not catch an ordinary Indian-resident parent, but it is worth checking where nationality and recent moves are involved.
After the inheritance, the assets are simply yours, and normal rules apply: India taxes their future income and any gain on sale, and in the Netherlands they join your Box 3 value. So the ongoing position is the same as any other Indian asset a Dutch resident holds. A practising CA confirms the inheritance is free of Indian tax, provides the no-inheritance-tax position for your Dutch adviser, and sets up the Indian side for the assets going forward.