Yes, income earned from property acquired by way of Inheritance is taxed in India as under:
i. Upto the date of death - taxed in the hands of the deceased. However, the same would be leviable and recoverable from the legal representatives of the deceased in a like manner and to the same extent as the deceased (liability restricted upto the value of property inherited).
ii. After the date of death - taxed in the hands of beneficiaries / executor(s) in their individual capacity.