How Much Gold Is Allowed from Dubai to India: Duty-Free Limits & Customs Charges Explained

India buys a lot of gold from Dubai, a prominent hub for the gold trade. Every year, millions of Indians take gold-laden flights to and from Dubai. That being said, there are laws restricting the amount of gold that can be lawfully imported or transported from Dubai to India as baggage by the Indian Customs Department and the Reserve Bank of India. Given the cultural and religious significance of gold in India, people often wish to bring actual gold items, including jewellery and bars, back from Dubai. Travellers should be mindful of the limitations, though, as going above them could result in fines and fees. This post aims to give a thorough overview of the current rules and regulations governing gold imports from Dubai.

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Table of Contents

Why is Gold Relatively Cheap in Dubai? How Much Gold is Allowed from Dubai to India for Male, Female, and Child Travelers Duty-Free Gold Limit for Males Duty-Free Gold Limit for Females Duty-Free Gold Limit for Children Custom Duty Charges on Gold Carried from Dubai to India Customs Duty on Gold Coins and Ornaments Customs Duty on Gold Bars Calculation of Custom Duty on Gold in India Declaration of Gold at an Airport

Conclusion

Most Asked Questions

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Why is Gold Relatively Cheap in Dubai?

Indians frequently flock to Dubai to purchase gold at reasonable prices. Dubai has lower gold prices than India for a number of reasons. The fact that bullion and gold jewellery are exempt from India's 3% goods and services tax is one of the factors contributing to Dubai's lower gold prices. In addition, the acceptable manufacturing costs charged by Dubai's jewellery stores translate into a price for 24K gold that is about 5% to 7% less than in India. The price differential is determined by daily global rates as well as the exchange rate between the Indian rupee and the UAE dirham. When buyers buy gold in bulk from Dubai, they end up saving more money. Therefore, one of the key reasons Dubai is still a popular choice for Indians looking to invest in gold is its pricing advantage.

How Much Gold is Allowed from Dubai to India for Male, Female, and Child Travelers

The Central Board of Indirect Taxes and Customs states that after paying duty, Indian visitors residing in Dubai for longer than six months are permitted to bring up to one kilogramme of gold in their luggage. If they transport more gold than the duty-free gold limit, they will have to pay customs charges. Indians are permitted to import the following two types of gold from Dubai. These are coins and bars of gold.

Duty-Free Gold Limit for Males

The duty-free gold carrying limit for male travellers returning to India from overseas is 20 grammes up to INR 50,000. This implies that a male traveller is free from paying customs tax if he is carrying gold jewellery or gold bars weighing no more than 20 grammes and valued at no more than INR 50,000. Thanks to this concession, male travellers can return with a small amount of gold for personal use without having to pay any taxes. However, customs duty must be paid on the excess amount if the quantity of gold transferred exceeds 20 grammes or if its value exceeds the INR 50,000 limit. Depending on whether the excess gold quantity is 20 grammes to 50 grammes, 50 grammes to 100 grammes, or more than 100 grammes, the duty rates are 3%, 6%, or 10%. Purchase invoices containing the date, price, and purity must also be shown to Indian customs for validation.

Duty-Free Gold Limit for Females

For female travellers coming back to India from outside, such as Dubai, the duty-free gold carrying allowance is 40 grammes up to INR 100,000. This kind of restriction covers gold jewellery as well as gold bars and coins that women might choose to return for their own purposes. There is no customs duty to pay as long as the total weight of the gold is less than 40 grammes and its worth is less than INR 100,000. The female passenger will have to pay customs duty on the extra amount over the duty-free limit if she is carrying more gold than the 40 grammes allowed, whether it be in the form of jewellery or bars. The actual quantity will determine the duty rate, which will be imposed in slabs of 3%, 6%, or 10% based on whether the amount is between 40 and 100 grammes, 100 and 200 grammes, or more than 200 grammes. It will also be necessary to provide appropriate purchase papers for Indian customs inspection.

Duty-Free Gold Limit for Children

Children under the age of 15 who are entering India from abroad are subject to more lenient customs duty exemption rules than adult male and female passengers. Gold bars and decorations up to 40 grammes in weight are allowed to be brought by children without incurring any customs fees. This permits the child to bring back gold presents or items within reasonable limitations. Duty is applied to the surplus gold if it weighs more than 40 grammes. Gold weighing between 40 and 100 grammes is subject to a 3% duty, 100 to 200 grammes to a 6% charge, and more than 200 grammes to a 10% duty. The current international gold rates are used to calculate the duty. The child's accompanying adults must produce purchase invoices for the gold objects together with documentation proving the child's identity and relationship to them. This is to facilitate children's gold baggage inside India and let customs authorities confirm the information after clearance.

Custom Duty Charges on Gold Carried from Dubai to India

Individuals who bring gold into the country are subject to import taxes levied by the Indian government. Customs duty is the name given to this import charge on gold. It is crucial to understand the Central Board of Indirect Taxes and Customs (CBIC) customs tax rate when bringing gold into India from Dubai. Depending on how long an Indian national plans to stay in Dubai, different customs duty rates apply. The custom tax duty is shown in the following table:

When bringing gold back to India, individuals who have been overseas for more than six months are eligible for a duty remission of 12.5% plus a social welfare fee of 1.25%.

Customs Duty on Gold Coins and Ornaments

If the total amount imported for each passenger is less than 100 grammes, there is a 10% customs fee applied to gold coins. Nonetheless, no customs charge is necessary if the total weight of the gold pieces is less than 20 grammes. Gold coins weighing between 20 and 100 grammes are subject to a 10% customs duty on their entire declared value. If the combined weight of gold jewellery and ornaments is less than 20 grammes and the overall value is less than INR 50,000, no customs duty is required. However, a 10% customs fee is applied to the excess amount if the quantity is less than 20 grammes and the value exceeds INR 50,000. The reported value of gold ornaments weighing between 20 and 100 grammes is subject to a flat customs duty of 10%. IGST and other taxes are payable in addition to the standard customs duty. For customs clearance, jewellery products need to be carefully documented.

Customs Duty on Gold Bars

The quantity imported determines the amount of customs tax that must be paid for gold bars. A 10% customs fee is applied to the value of the gold bars if each traveller brings in less than one kilogramme of the precious metal. There is no need for customs duty if the quantity of gold bars is less than 20 grammes. Gold bars weighing between twenty and one hundred grammes are subject to a 3% customs duty.

Calculation of Custom Duty on Gold in India

The kind and quantity of gold items that are imported into India determine the customs duty. Calculating custom duty requires estimating the worth of the gold, adding the relevant duty rate, and deducting taxes from the duty amount. On the import day, the value of gold coins, bars, and jewellery is determined by the current global prices for 24K pure gold. The customs department establishes the appropriate duty slabs, which range from 0% to 10%, based on this assessed value. Customs cannot determine the actual worth of gold unless purchase invoices and purity and quality certificates are properly documented. Passengers who fail to provide accurate information risk fines and, in certain cases, confiscation. To prevent issues, accurate documentation and unambiguous communication are therefore necessary.

Declaration of Gold at an Airport

If an Indian's gold haul from Dubai is above the duty-free threshold, they must disclose it at the airport. Travellers carrying bags or non-dutiable products should use the green channel in the airport; dutiable goods should use the red channel. Indian travellers who are carrying more gold than is allowed should therefore use the red channel to identify themselves as transporting dutiable gold from Dubai. The Customs Act of 1962 states that failure to declare excess gold may result in the seizure of the traveller's belongings and a steep fine. If the passenger breaks the law, there can be legal repercussions as well.

Conclusion

Finally, whether shipping gold by courier or as accompanying baggage from Dubai to India, travellers must be aware of the import restrictions on gold. Gold may be seized along with penalties and taxes for not declaring exact amounts or going above the permitted limits. Respecting age and gender-specific restrictions ensures a seamless customs-clearing process free from unanticipated taxes or duties. In order to avoid problems at Indian ports and airports, proper documentation verifying acquisition, purity, and value is also necessary. Overall, travellers can lawfully import small amounts of duty-free gold from Dubai to India for personal use as long as they prepare ahead and respect the set restrictions.

FAQ

Q1. Can I buy gold in Dubai duty-free?

Yes, you will not be required to pay customs tax if you purchase gold within the allowed amount and stay in Dubai for longer than six months. The gender-specific gold limit differs. A man travelling alone may bring up to 20 grammes of gold. For youngsters and females, the maximum is higher—up to 40 grammes.

Q2. Can I carry gold from Dubai to India?

Yes, a maximum of 20 grammes of gold may be carried by male travellers. The most gold that a woman or child can carry is 40 grammes. However, you will be responsible for paying customs fees if this amount is over the duty-free threshold.

Q3. How much is the customs duty for gold in India?

If the duration of stay in Dubai exceeds six months, the customs duty for up to 1kg is 13.7%. The customs duty on up to 1kg of goods is 38.50% if the stay in Dubai is shorter than six months.

Q4. Can I bring gold in my luggage when travelling from Dubai to India?

Yes, you may include up to one kilogramme of gold in your luggage. However, if it goes over the allowable limit, you have to pay the customs charge.

Q5. Should we declare gold at the airport?

Once you arrive in India, you must report any extra gold you may be carrying that exceeds the duty-free limit at the airport. Passengers must declare their gold holdings at customs if any female passenger has more than 40 grammes of the precious metal and any male passenger has more than 20 grammes. The Customs Act of 1962 states that travellers who fail to declare extra gold at customs may be fined or have their luggage seized.

Q6. How to carry gold jewellery in flight?

Gold jewellery can be packed in your cabin luggage to save you the trouble of going through the lengthy inspection and screening process. It will guard against harm to your jewels. If the amount of gold exceeds the limit, you must verify the airline policy and disclose it at the airport. 

Q7. Who sets the limit on the amount of gold to be carried from Dubai to India?

The amount of gold that can be imported into India from Dubai and/or other emirates is always determined by the Central Board of Indirect Taxes and Customs.

Q8. Are children levied duty for gold jewellery in India?

Gold jewellery with no duty is available to all children who have resided outside of India for a minimum of one year.