Now I am US citizen. Left India 40 years ago. Now selling father's property. They say keep money in indian bank for 3 years. Then there will be no tax. But if we change to us dollars now, Does this make sense and legal? Should I keep there for 3 years? Will it be safe or how to keep it safely for 3 years?inheritance tax of 20.6% will be deducted. That's why buyer is telling to apply and obtain PAN # from Income Tax Dept of India.
Can you explain all these

There is no inheritance tax in India. But when you sell property, the gain from sale of property is taxable.
You will also have to report this sale on your US tax return. You will claim credit for taxes paid in India; for this use form 1116.

If you can avoid the tax by keeping the money IN India, then keep the money in India.

You WILL have to pay long-term capital gains tax on your U.S. income tax return, but that maxes out at 15% and is likely only 5%.