Needing to bat out the entire fifth day's play at the Kingsmead to force a draw, the Indians had the worst possible start by losing Virat Kohli in the very first ball and never really recovered from the jolt to be bundled out for 223.
Ajinkya Rahane stood bravely amidst the ruins with a gutsy 96 and was the last man out. India were pegged back after losing five wickets in the morning session.
South Africa then chased down the small 58-run target in 11.4 overs overs as skipper Graeme Smith (27) hit a six and a four off Rohit Sharma to record their first win at Kingsmead. Alviro Petersen remained unbeaten on 31.
The victory was a befitting farewell gift to their retiring hero Kallis, who himself had a memorable match by cracking his 45th Test hundred.
Smith's cover drive to fence triggered off celebrations in the home camp with the players hugging each other and shaking hands while the spectators also cheered the team.
It is the fifth time that India have lost a Test series on South African soil, managing a 1-1 draw only once in 2010-11 rubber. India have never won a series in South Africa and now have lost nine of the last 10 overseas Tests.
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