Bringing gold from Dubai to India is allowed for Indian citizens, but there is a limit applicable on such items
Many people bring gold from Dubai to India, since the gold is generally cheaper in Dubai, as compared to India. This is largely due to lower taxes and import structures. As an Indian passport holder or a person of Indian origin, you can bring gold from Dubai to India. However, there are some limits imposed as per the rules of customs. Let's check out the details.
How much gold is allowed from Dubai to India?
Duty-free jewelry, not coins
It is important to note that you can bring only gold jewelry from Dubai to India. Individuals are not allowed to bring items like gold bars, gold coins and gold biscuits, as these are typically classified as commercial items. The duty-free gold that you can bring from Dubai to India also depends on your gender and overall duration of stay abroad.
If you are an Indian passport holder or person of Indian origin, and have been staying abroad continuously for more than 365 days, you can bring gold from Dubai to India. For females, the duty-free amount allowed is 40 grams, with overall value capped at Rs 1,00,000. For males, the limit is 20 grams, with overall value capped at Rs 50,000. The same is applicable for boys and girls who have stayed abroad for more than a year.
As mentioned earlier, you can only bring gold jewelry from Dubai to India. For people who have stayed abroad for less than 365 days, there is no provision for bringing duty-free gold from Dubai to India. If such a person brings gold, they will need to declare the items upon arrival and pay the full customs duty.
Customs duty on gold bars, coins, biscuits
Irrespective of your duration of stay abroad, items like gold coins, gold bars and gold biscuits are never duty free. You will have to pay duty on these for every gram you bring. Maximum permissible limit per person is 1 kg of gold bars, coins or biscuits. Concessional customs duty is applicable on individuals who have been staying abroad for more than 6 months continuously. For individuals with shorter stay abroad, the full tariff rate should be paid.
Customs duty on gold from Dubai to India
Above the duty free allowance, standard tax rates are applicable. For example, basic customs duty (BCD) of 12.5% is applicable. The concessional tax rate for applicable individuals is in the range of 6% to 10%. Taxes also include Agriculture & Infrastructure Cess (AIDC) of 2.5% and integrated GST (IGST) of 3%. As such, the total tax on gold from Dubai to India is around 15% to 18%.
Red channel vs. green channel
It is the responsibility of the person bringing gold from Dubai to India to declare if they are bringing gold above the duty-free allowance. If the gold is within the allowed limits, travelers can just walk through the green channel. In case the person is bringing more gold than the duty-free allowance, they need to go through the red channel. They have to declare all gold they have and pay the applicable customs duty. Not doing so will lead to financial penalties, seizure of gold and even arrest and imprisonment.
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