Another major reason behind the expats converting their savings into gold at the offered gold rate in UAE is because this precious metal offers the investor a hedge against inflation. A few years ago, the Indian Central Board of Indirect Taxes and Customs, imposed a limit on the amount of gold that can be brought from Dubai to India.
The low gold rate in UAE and the quality of gold are the main reasons why expats resort to buying gold in Dubai. There are many gold souks, such as the Deira Gold Souk that is one of the most renowned places where people go to purchase gold in Dubai. However, the restriction via the custom duty in India has had quite an impact on the gold imports from Dubai and other emirates to India. Let us see how much gold allowed from Dubai to India.
As per the website of CBIC i.e. the Central Board of Indirect Taxes & Customs, any Indian passenger that is carrying a valid Indian passport, who has been living abroad for a period of more than a year is eligible to carry any gold jewelry in their baggage to India.
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The following are the details for a gold duty-free import limit from Dubai to India.
Maximum Monetary Value
20 grams of Gold Jewelry
40 grams of Gold Jewelry
This duty-free allowance on Dubai’s gold jewelry is applicable for children as well, provided they have resided in Dubai or any other country abroad apart from India for at least one year. The quantity of gold brought to India from the city of gold (Dubai) should not exceed the limit of 20 grams for male passengers and 40 grams for female passengers.
Another thing to keep in mind for the Indian passengers is that this duty-free limit is only applied to the gold jewelry. The other forms of gold such as coins or bars are liable for the duty fee levied by the customs.
If the passengers that are traveling from Dubai to India are carrying gold jewelry more than the limit that is set, they are liable to pay the customs duty fee.
One common question amongst people is how much gold can I bring from Dubai to India on tourist visa?
All passengers holding a valid Indian passport, who have resided in Dubai or any other country abroad for a period of more than 6 months, are allowed to carry gold coins or bars that weigh up to 1 KG as an item in their checked-in baggage. However, if the limit of gold carrying from Dubai to India is exceeded by them they are liable to pay the fee charged as customs duty.
The customs duty in the year 2019 charged on gold brought to India from Dubai was raised to 12.5% from 10%.
The following are the custom duty charges for carrying gold to India from Dubai:
Custom Duty Charges
INR 300 / 10 grams + 3% of Edu Cess
Other gold forms such as tola bars, coins, and ornaments
INR 750 / 10 grams + 3% Edu Cess
If an individual carrying gold within the mentioned limits comes to India from Dubai without staying for a period of up to 6 months, the individual is eligible to pay an additional customs duty of 36.05%.
As per the website of the UAE Embassy, when an individual is traveling to India the maximum limit of carrying gold to India from Dubai should not be more than 10kg per person. This is inclusive of all the gold that the person is carrying, even the ornaments.
The custom duty fee on bars and coins that exceed more than 1kg is 36.05%. So even if a larger limit is allowed, it is very uncommon for people to take gold that exceeds 1kg.
There are various reasons for people buying gold from Dubai. The gold quality is authentic and the gold price in Abu Dhabi and other emirates is inexpensive. However, it is important for expats to be aware of the limit of gold allowed from Dubai to India 2020 when it comes to importing gold as it can be one of the commodities that are highly taxed.
When we talk about the gold import limit, it is essential for one to be aware of the latest policies of customs. You should make it a point to go through the banned list items at Dubai Airport before you are coming back home or arriving in Dubai. The various restrictions are set in place to discourage any gold smuggling and to improve the overall economic deficit.
Additionally, the CBIC aims to bring in place new gold import guidelines in order to facilitate the passengers in a better manner. The new guidelines once final aim to ease the custom clearance for people that are bringing in gold to India from Dubai and other countries.
According to the budget report of 2019, the custom duty charged on gold allowed from Dubai to India has been offered to be risen from 10-12.5%. The non-resident Indians who are visiting India post a minimum stay of 6 months outside the UAE and carrying above the gold limit from Dubai to India will have to pay a customs duty on the imported gold in the convertible foreign currency. If the passengers who are carrying gold have lived abroad for less than 6 months, they will have to pay 36.05% in the form of import duty.
Moreover, there will be a weight limit on the gold imported even after the payment of the import duty. The passenger can just bring with them gold bars and coins that weigh up to one kilogram while they travel from the Emirate of Dubai to India. Some time back, this limit was ten kilograms of gold for each passenger. However, now the gold limit from Dubai to India 2020 is one kilogram while travelling. The people who carry above this limit can get prosecuted with additional gold above the determined limit getting seized. The gold coins and bars must have details like serial number, weight, and the manufacturer’s name inscribed properly with the passengers.
The customs duty on golf in India is applicable in the following two ways-
Specific duty rate: This is on the basis of the weight or quantity of the gold.
Ad-Valorem duty rate: This duty rate is on the basis of the value of gold and not its weight.
Additionally, an education cess of 3% is charged on the applicable value of duty. Being a responsible traveler who brings gold to the country, you must be aware of the latest amount of customs duty for avoiding unnecessary inconvenience.
It is compulsory to declare gold when you arrive in India and pay the customs duty in case the amount is more than the duty-free limit. The passengers who are carrying gold ornaments or jewelry beyond the limit permissible must not walk through that green channel, which for only those travelers who are not carrying any dutiable goods.
There is a red channel, which is designated for the passengers who are carrying dutiable goods. Importing gold without the declaration or by concealing it in the baggage may lead to the confiscation and a fine or penalty. The offender may be under the risk of being prosecuted under the Customs Act 1962.
Q1: How much gold is allowed from Dubai to India for female passengers?
Answer: A female passenger is allowed to wear a maximum of 40 gms of gold, which must not cost above 100,000 in Indian rupees.
Q2: What is the amount of gold that a male is allowed to wear while traveling to India from Dubai?
Answer: All the male passengers who are traveling to India from Dubai are allowed to wear a maximum of 20 gms of gold, which must not cost above 50,000 in Indian rupees in the form of duty-free allowance.
Q3: How much import duty is charged on gold?
Answer: The import duty charged on bringing gold back to India is 12.5%.
Q4: What are the conditions for bringing gold to India with no restrictions?
Answer: In case you declare the gold jewelry at customs & are also making payment of the fixed import duty, then there will not be any limit charged on the gold amount that you are allowed to bring to India.