Originally posted 2023-10-24 14:50:54.
The amount of gold that India produces every year is estimated to be about 1.6 tonnes, however, the amount consumed by the country every year is considerably greater than this amount of gold that India produces each year. In order to satisfy its domestic gold demand, the country imports most of its gold from other countries, including the United Arab Emirates.
With its customs, traditions, and financial investments deeply rooted in the precious metal, India is one of the world’s largest importers of gold. On the other hand, Dubai has emerged as one of the world’s biggest gold trading hubs, drawing Indian visitors and investors to it who are seeking a high level of luxury and luxury gold.
Considering the cost of gold in the UAE is lower than that in India, many Indians who travel back to India prefer to take along gold as a souvenir. This guide will help you regardless of whether you are a resident of the UAE or just a visitor if you are interested in carrying gold from Dubai to India, but aren’t sure how much gold you can carry.
Table of Contents
How Much Gold Can You Carry From Dubai to India?
In the past, travellers could carry large amounts of gold into India without declaring it. In an effort to combat widespread gold smuggling in India, the Indian Central Board of Indirect Taxes and Customs set a limit on the amount of gold imported from Dubai a few years ago. Indian government regulations have set strict limits on the amount of gold that can be imported from abroad, including Dubai. This regulation is meant to strike a balance between meeting Indian consumers’ gold needs as well as managing the flow of foreign exchange reserves to maintain economic stability.
- You can bring a certain amount of gold into India without worrying about a duty charge, and the quantity is determined by your gender instead of your residence.
- The law allows a man traveling to India from Dubai to bring only 20 grams of gold with him, while a woman is allowed to carry up to 40 grams of gold.
- Child who holds an Indian passport and has lived abroad for more than a year is eligible to take home tax-free 10-gram gold jewelry from Dubai.
- If a couple intends to carry gold from Dubai to India, they are allowed to carry up to 60 grams worth of gold subject to a limit of 1.5 lakh rupees per couple.
This table should give you a better idea:
|
Passenger
|
Duration of Stay Abroad
|
Type of Gold
|
Maximum Value in INR
|
|---|---|---|---|
|
Indian National Male
|
More than one year
|
Jewellery
|
50,000
|
|
Indian National Female
|
More than one year
|
Jewellery
|
100,000
|
|
Indian National Male/Female
|
Less than 6 months
|
Any
|
No free allowance
|
It is important to note that in order to be eligible for the duty-free allowance, passengers may not carry any other gold items such as gold coins, biscuits, and bars as part of that allowance. If you carry any gold products other than gold jewellery, you will have to pay duty on them.
In addition, it is important to mention that if you purchased jewelry in India, you can bring it back home from Dubai. However, you must provide an EXPORT certificate issued at the Indian airport before leaving the country.
Custom Duty Gold
So now you know how much gold is allowed per passenger from Dubai to India. Let’s discuss customs rules now. Indian law allows gold import as personal baggage by Indian citizens who have been abroad for at least six months. The following custom duty rate applies to Indian origin persons carrying gold from Dubai to India based on their duration of stay abroad.
Gold imports from Dubai to India are subject to the following rates:
- Specific duty rates: Gold’s quantity or weight is used to calculate this rate.
- Ad-valorem duty rate: Based solely on gold value, this rate is calculated.
Following the amendments to the gold custom duties, the import duty on gold has increased from 7.5% to 12.5% as of July 20, 2022.
|
Duration of Stay Abroad
|
Duty-free Allowance
|
Customs Duty Payable
|
|---|---|---|
|
More than one year
|
Max INR 50k for males and INR 100k for females
|
Up to 1 kg: 13.75%
|
|
Six months to one year
|
No allowance
|
Up to 1 kg: 13.75%
|
|
Less than six months
|
No allowance
|
38.5%
|
Those who have been abroad for more than six months qualify for a concessional rate of duty of 12.5% + social welfare surcharge of 1.5% on gold.
The following clarification is needed:
A short visit within the prior six months, such as one that lasts only 30 days, will not be counted towards the six month rule that entitles you to bring one kilogram of goods without paying the customs duty.
Gold Carrying Limit
I must admit that India has very strict rules for carrying gold from Dubai to India. Therefore, even if you pay the required customs fee, you can’t bring more than 1 KG of gold. People with Indian passports can bring up to 1kg of gold with them for a duty payment of 13.5% if they have lived in Dubai or another foreign country for more than six months. Fortunately, by paying custom duty you can bring any type of gold, so it does not restrict you to gold jewelry.
Declaration of Gold on Arriving India
It is mandatory to declare gold items to Customs authorities upon entering India. There are several penalties for not announcing gold or other dutiable items under the 1962 Customs Act. Under Section 111, Section 112, Section 135 and Section 137, you can be penalized for undeclared gold items.
Passengers wishing to declare dutiable goods such as gold should use the red channel at all Indian airports.
Dubai Gold Customs Regulations
Similarly to Indian gold customs rules, people should know Dubai customs regulations and limits when carrying gold from Dubai to India. By following these regulations and the necessary procedures, people can rest assured that gold imports will be hassle-free and legal.
The following are Dubai’s gold export regulations:
There are usually no restrictions on the gold jewelry you can export as you are allowed to carry a maximum of 10 kilograms of gold when traveling out of the UAE without paying customs duties in Dubai when traveling out of the UAE. However, you may need permits or licenses if you export gold or other precious metals for business, trade, or commercial purposes.
Whether you intend to use them for business or personal reasons, when exporting gold or other valuable items from Dubai, declare them at the customs office. Depending on the nature of the export (personal use or commercial), there may be duty and tax considerations.
Documentation is necessary when exporting gold, such as an original invoice, gold quantity, Karat, and manufacturer. Commercial gold exports may be subject to duty and tax regulations. Dubai has strict export regulations to prevent smuggling and illegal activities, so make sure your gold is legal before exporting.
Dubai’s Gold Market
The amount of gold available in Dubai’s market makes it no surprise that Dubai is often called the city of gold. Deira’s Gold Souq is one of the world’s largest gold markets, where you can buy almost any kind of gold. Generally speaking, the gold price in Dubai is 15 percent lower than in India, and since strict laws prevent imitation gold from appearing in the gold souq, you can get genuine gold rather than fabricated gold in India, which are two of the top reasons Indians carry gold from Dubai to India.
Conclusion
As you are aware, these limits may change at any time, and you may be required to follow different rules and regulations depending on when you visit. If you plan to travel to India, it is imperative that you contact the Indian customs authorities in order to inquire about current duty rates and regulations. Whenever you intend to travel to India, you should contact the Indian customs authorities or visit their official website.
