Gold for Indians is an emotion. It symbolises our culture, tradition, and heritage. Whether it is a marriage ceremony or any auspicious event, Indians gift gold jewellery or coins to their loved ones as a token of fortune. Thus, while visiting countries like Dubai, where gold is available at a cheaper rate, Indians prefer buying this metal as much as they can afford. However, buying gold from a foreign land comes with some obligations that every Indian must know.
Duty Free Limit on Gold Imported to Indian from Dubai
Since April 2016, only Indian travelers who lived out of the country for more than a year can bring in gold from Dubai into the country. This rule was implemented by the Central Board of Indirect Taxes and Customes. The amount of gold that one can bring into the country varies from gender to gender.
As per the rule, a man travelling from Dubai to India can carry a maximum of 20 gms of gold with him. Meanwhile, a woman who is travelling from Dubai can carry a maximum of 40 gms of gold with her. Apart from this, children who have lived out of India for more than a year can also bring gold with them.
Why is Gold Cheap in Dubai?
Indians often travel to Dubai to buy gold at affordable rates. Gold prices in Dubai are cheaper compared to India due to several reasons. One of the reasons for a cheaper gold rate in Dubai is zero GST (goods and services tax) on bullion and gold jewellery, while India imposes 3% GST on gold. Apart from this, Dubai jewellery stores charge a reasonable manufacturing cost, which makes 24K gold in Dubai approximately 5% to 7% cheaper than in India.
Daily global rates and the currency rate between the UAE dirham and the Indian rupee determine the price difference. Consumers save more money when they purchase gold in huge quantities from Dubai. Thus, the pricing advantage is one of the major reasons why Dubai remains a gold investment destination for Indians.
What are Custom Duty Charges on Gold?
All Indian residents who have lived abroad for more than 6 months, or in Dubai for that matter, are allowed to bring gold coins or bars weighing up to 1 kilogram in their luggage when they return to India. If the amount of gold they bring from Dubai to India exceeds the duty-free import limit, they will be required to pay a customs charge.
| Duration of Stay | Duty-Free Allowance | Customs Duty Payable |
| Less than 1 year | No Allowance | 38.50% |
| 6 months to 1 year | No Allowance | 13.7% up to 1 kg |
| More than 1 year | Maximum of Rs.50,000 for a male and Rs. 1,00,000 for a female | 13.7% up to 1 kg |
Custom Duty Charges On Gold Bars
The customs tax on gold bars is determined by the quantity of gold imported, which are as follows:
- When the quantity of gold bars brought are less than 1 kg per passenger – 10% customs charge is levied on the gold bars value.
- When the quantity of gold bars brought is 20 grams – 100 grams – 3% custom charge is levied.
- When the quantity of gold bars brought is less than 20 grams – no customs duty is levied.
Custom Duty Charges On Gold Coins
When the total weight of the gold coins imported is less than 100 grams per passanger, a 10% custom charge is levied on gold coins. When the total weight of the gold coins is 20 grams – 100 grams, 10% custom duty is levied on the total gold coins value. However, if the total weight of the gold coins imported is less than 20 grams, no customs duty is required.
Custom Duty on Gold Calculation in India
The customs duty on gold imported into India is calculated based on the type of gold item and its quantity. Estimating the gold value, adding the applicable duty rate, and applying taxes on the duty amount is essential for calculating custom duty.
Gold coins, bars, and jewellery are valued based on present global gold prices of 24K purity on the import day. Based on this assessed value, the customs department determines the appropriate duty slabs, ranging from 0% to 10%.
Proper documentation of gold purchase invoices and certificates showing quality and purity is required for customs to estimate the exact value. If passengers are unable to provide correct information, it may result in penalties and confiscation in some situations. Thus, proper documentation and clear communication are required t to avoid problems.
Gold Carrying Limit from Dubai to India
As per the Central Board of Indirect Taxes and Customs, Indian travellers can bring up to 1 kg of gold in baggage from Dubai upon staying there for more than six months after payment of duty. However, they will have to pay customs duties for carrying any amount of gold above the duty-free gold limit.
Type of Gold Permitted
Indians can carry gold from Dubai in the following two forms:
- Gold bars
- Gold coins
Duty-Free Gold Limit for Male Passengers
A male passenger can bring 20 grams (maximum value of Rs. 50,000) of gold without paying any customs duty from Dubai to India. He can carry gold coins or bars within this limit to be exempt from customs duty in India. However, customs duty must be paid on the extra grams if the gold exceeds 20 grams or the Rs. 50,000 limit. Passengers must produce the gold purchase invoices with the price, purity and date at Indian customs for verification. The custom duty rates on excess gold are as follows:
- Custom duty rate of 3% when the gold quantity is 20 grams to 50 grams
- Custom duty rate of 6% when the gold quantity is 50 grams to 100 grams
- Custom duty rate is 10% when the gold quantity is over 100 grams
Duty-Free Gold Limit for Female Passengers
For female passengers, the duty-free gold limit from Dubai is 40 grams (maximum value of Rs. 1 lakh). Females can bring back gold in the form of jewellery, bars, or coins while returning from Dubai for their personal use. Any amount beyond this limit will attract customs duty. Passengers must also produce proper documentation of gold purchase at Indian customs for verification. The custom duty rates on excess gold are as follows:
- Custom duty rate of 3% when the gold quantity is 40 grams to 100 grams
- Custom duty rate of 6% when the gold quantity is 100 grams to 200 grams
- Custom duty rate is 10% when the gold quantity is over 200 grams
Duty-Free Gold Limit for Children
Children under the age of 15 years can bring gold ornaments of a maximum of 40 grams without paying a custom duty. This includes gifts or presents given to the child in the form of gold. However, a child carrying or buying gold from Dubai must have identity proof of his/her relationship with the adults accompanying the child. So, the guardian must bring this paperwork while producing the purchase invoice to the Indian customs. Customs duty must be paid on the extra grams of gold carried by a child at the following rates:
- Custom duty rate of 3% when the gold quantity is 40 grams to 100 grams
- Custom duty rate of 6% when the gold quantity is 100 grams to 200 grams
- Custom duty rate is 10% when the gold quantity is over 200 grams
FAQs
Consequences of Non-Declaration of Excess Gold?
As per the Customs Act of 1962, non-declaration of excess gold can lead to confiscation of the passenger’s baggage and charges of a hefty penalty. The passenger may also face legal consequences for not abiding by the law.
Now that you know how much gold is allowed from Dubai to India without duty, you can plan your purchase from Dubai accordingly. However, if your purchase exceeds the decided limit, you can pay the required customs duty and take your belongings home without any legal hazards.
How to Declare Gold at an Airport in India?
Indians need to declare the gold amount they are carrying from Dubai after reaching the airport if it exceeds the duty-free limit. The green channel in the airport is for travellers carrying non-dutiable goods or luggage, and the red channel is for dutiable goods. Thus, Indian passengers carrying gold above the permitted limit should enter the red channel to declare that they are carrying a dutiable gold amount from Dubai.
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