Two certificates that sound alike but do different jobs
The single biggest source of confusion is treating a legal heir certificate and a succession certificate as the same thing. They are not, and asking for the wrong one wastes weeks.
A legal heir certificate is, at its core, a statement of who the surviving heirs are. It is commonly used for things like transferring a pension, claiming provident fund or gratuity, or establishing the family tree for routine transfers. A succession certificate is a court order under the Indian Succession Act that specifically authorises the named heir to collect the deceased's debts and movable securities — bank balances, fixed deposits, shares, bonds. Because it carries the court's authority to receive securities, it is the document banks and company registrars usually insist on for that money.
| Document | What it establishes | Typically used for |
|---|---|---|
| Legal heir certificate | Who the heirs are | Pension, PF, routine transfers |
| Succession certificate | Authority to collect securities | Bank balances, FDs, shares |
There is also a third route — a probated will or letters of administration — which applies where the deceased left a will (covered on the will page). The institution holding the asset effectively decides which document it will accept, so the practical first step is always to ask each bank and registrar, in writing, exactly what they require for the specific asset.
The court process, at a high level
A succession certificate is obtained by petitioning the district court that has jurisdiction over where the deceased ordinarily lived or where the assets are. The petition sets out the deceased's details, the date of death, the heirs, and a schedule of the debts and securities the certificate is being sought for. The court ordinarily publishes a notice inviting objections, and once that period passes without a sustained challenge, it grants the certificate — often after a court fee calculated as a percentage of the value of the assets covered.
We deliberately won't put a number of weeks or months on this. Timelines vary widely by state, by court workload, and by whether anyone contests, and any specific figure would be a guess. What is consistent is the shape: petition, notice period, grant.
For an NRI, the practical wrinkle is presence. Much of this is handled through a lawyer in India under a power of attorney, so you are not forced to fly back for every hearing. The drafting of the petition, the court appearances and the certificate itself are legal work, done by an advocate — not something a chartered accountant signs. Where we fit is alongside this: valuing the assets so the schedule and court fee are right, and handling the tax steps that run in parallel.
Closing the deceased's tax affairs
When a person dies, their income tax does not simply switch off. Income arose in their name up to the date of death — salary, interest, rent, dividends — and a final return for that year usually has to be filed. The law makes the heir the legal representative of the deceased (Section 159), responsible for that return, but only out of the assets that came to them — an heir is not personally on the hook beyond the estate.
Before any of this can be filed, you have to be registered as the legal representative on the income tax portal, which the department approves against proof of death and of your status as heir (this is where the legal heir or succession certificate is used). Only then can the deceased's PAN be operated to file the return, claim any refund due to them, or respond to a notice in their name.
There is a clean dividing line worth holding onto. Up to the date of death, the income is the deceased's and goes on their final return. After the date of death, income earned on the inherited assets — interest on a deposit now yours, dividends on shares now yours — is your income and goes on your own return. Getting that split right is what stops the same income being taxed twice or missed entirely.
A worked example: a son claiming his father's deposits and shares
Arjun, an NRI in Australia, is the only son and heir of his late father in Nagpur. His father left fixed deposits at two banks and a modest holding of listed shares, and no will. Arjun assumed he could just send a death certificate and have the money transferred. Both banks refused, and one specifically asked for a succession certificate before releasing the deposits and the shares.
An advocate in India, acting under a power of attorney from Arjun, petitions the district court for a succession certificate listing the deposits and the shareholding. While that runs its course, Arjun's chartered accountant values the assets so the petition schedule and the court fee are correct, registers Arjun as his father's legal representative on the income tax portal, and prepares his father's final return — the interest credited up to the date of death is his father's income, filed under his father's PAN. Once the certificate is granted, the banks release the deposits and the registrar transfers the shares into Arjun's name. From that point, any interest or dividend is Arjun's own income, on his own return; and if he later sells the inherited shares, the cost and holding period carry over from his father.