Carrying Gold to India? A Reminder to NRI’s on Customs Duty

Gold is a precious metal which was demanded in many forms like ornament, coins and bars. Due to its drastic increase in Market value, people worldwide want to save resources and invest in gold. It was important to be aware of the gold import limits when transporting gold from foreign countries to India(Especially for Non-Resident Indians(NRIs). People from Dubai tend to import gold as Dubai has lower gold prices than India. India is one of the world’s largest gold importers The limits on the amount of gold that can be brought from foreign countries to India are set by the Indian government, specifically the Directorate General of Foreign Trade (DGFT) and the Customs Department. The government had made rules and limits to NRIs to bring gold. How much gold one can legally import or transport as baggage from Dubai to India? There are stringent laws to avoid gold smuggling from foreign countries. Non-disclosure of precise quantities or exceeding the allowed limits can result in penalties, taxes, and possibly the seizure of gold. It was important to provide proper documentation proving purchase, purity, and value to prevent difficulties at Indian ports and airports. Overall, with careful planning and adhering to the established limits, visitors can legally import duty-free gold in modest quantities for personal use from Dubai to India. Read More: Finance Ministry notifies Amendment in Tariff Value of Crude Palm Oil, Gold, Silver and Areca Nuts Duty-free Gold Carrying Limits Gold Carrying LimitsFor Male Passengers: Male passengers or NRI returning to India from abroad, can carry 2 up to 20 grams of duty-free gold worth up to INR 50,000. Up to 20 grams and with a value not exceeding INR 50,000, the NRI was exempted from paying customs duty which allows to carry back a small amount of gold for personal use without incurring any tax liability. On exceeding the limit, the duty rates range from 3%, 6%, or 10% depending on whether the extra gold quantity is 20 grams to 50 grams, 50 grams to 100 grams, or more than 100 grams have to be paid. Purchase invoices with the purity, price, and date must also be produced for verification at Indian customs. Gold Carrying Limits For Female Passengers: The duty-free gold carrying limit for female passengers or NRI returning to India from abroad, is up to 40 grams worth up to INR 100,000 which can be both gold jewelry as well as gold bars/coins. If the female passenger is carrying more than the prescribed 40 grams of gold, she will have to pay customs duty on the excess amount above the duty-free limit. Gold Carrying Limits For Children: Children are permitted to bring gold ornaments and bars weighing up to 40 grams without paying any customs charge. If the amount of gold exceeds 40 grams, a duty is levied on the excess. A 3% duty is paid on gold from 40 grams to 100 grams, a 6% duty weighing 100 grams to 200 grams, and a 10% duty on gold weighing more than 200 grams. The duty is determined using current international gold rates. Adults who accompany the child must bring paperwork establishing the youngster’s identification and relationship to them, as well as purchase invoices for the gold objects. Statutory Provision for Exemption of Duty on Gold As per the General Exemption No.162 of Indian Customs Rule, In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) exempted goods of the description specified in column (2) of the Table below and falling under Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India by an eligible passenger, from so much of the duty of customs leviable thereon which is specified in the said First Schedule, as is more than the amount calculated at the rate as specified in the corresponding entry in column (3) of the said Table and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act. 1. Gold bars, other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units, and gold coins. – Rs. 300 per 10 gms. 2. Gold in any form other than at S.No.1 above, including tola bars and ornaments, but excluding ornaments, studded with stones or pearls. – Rs.750 per 10 gms. For smooth customs clearance, every NRI s must be aware of the rules and regulations in India. Proper documentation of purchase invoices and certificates showing purity and quantity are required for easy clearance. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates