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By Vipul Jain
Dubai is considered a paradise for gold buyers, most widely known as the City of Gold. The gold rates in Dubai keep fluctuating daily. Low gold rates and high quality of gold are the main reasons why people turn to buy gold from Dubai. However, do you know that there is a limit set on the amount of gold that can be brought from Dubai to India? Keep reading further to know and get the answer to the question of "How much gold can I carry from Dubai to India."
People from India often travel to Dubai to buy gold at affordable rates. The prices of gold in Dubai are lower as compared to India due to several reasons. One of the main reasons for a lower gold rate in Dubai is zero GST on bullion and gold jewelry, whereas India charges 3% GST on gold. This means that there is no Value Added Tax (VAT) when purchasing gold.
Other than this, the jewelry stores in Dubai charge a fair manufacturing cost. It makes 24K gold in Dubai almost 5-7% cheaper as compared to India. The currency rate and daily global rates between the Indian rupee and the UAE Dirham show the difference between the prices. People save more money when they buy gold from Dubai in large quantities. So, the pricing benefit is also one reason why Dubai remains a gold investment stop for Indians.
Indians can carry gold from Dubai in two forms, which are Gold bars and gold coins. As per the Central Board of Indirect Taxes and Customs, an Indian traveler can carry up to 1kg of gold in baggage from Dubai. Provided if they stay there for more than six months after payment of duty. However, they need to pay customs duties if they carry any amount of gold above the duty-free gold limit.
The duty-free gold limit in India is different for both men and women because of cultural and traditional values. If you carry any gold that is more than the duty-free limit, you must declare it at customs. Let us now understand the duty-free gold limit for male, female, and child passengers.
A male passenger can carry up to 20 grams (maximum value of Rs. 50,000) of gold from Dubai to India without paying any customs duty. He can bring either gold coins or gold bars within this limit to stay free from paying customs duty in India. However, he must pay customs duty on the extra grams if the gold limit exceeds 20 grams or Rs. 50,000 limit. For verification purposes, the passenger must provide an invoice with the price for the gold purchase, purity, and date at the Indian customs. Following are the customs duty rates that the male passenger has to pay if he brings excess gold:
| Custom Duty Rates | Gold Quantity |
|---|---|
| 3% | 20-50 grams |
| 6% | 50-100 grams |
| 10% | Over 100 grams |
The duty-free gold limit from Dubai for a female passenger is 40 grams, which means a maximum of Rs. 1 lakh. They can buy gold from Dubai in the form of bars, coins, or jewelry for their personal use. Any amount that exceeds this limit will be charged with customs duty. The female passenger must produce proper documents of gold purchase at Indian customs for verification. The rates of customs duty on carrying gold beyond the limit are as follows:
| Custom Duty Rates | Gold Quantity |
|---|---|
| 3% | 40-100 grams |
| 6% | 100-200 grams |
| 10% | Over 200 grams |
Children who are under the age of 15 can carry gold of a maximum of 40 grams without paying any customs duty. Just like a female passenger, it includes gifts given to the child in the form of gold. However, the child carrying gold from Dubai must have valid proof of their relationship with the adult going along. It means the guardian must carry this paperwork while providing the purchase invoice to the Indian customs. Custom duty rates that need to be paid on the extra grams of gold are as follows:
| Custom Duty Rates | Gold Quantity |
|---|---|
| 3% | 40-100 grams |
| 6% | 100-200 grams |
| 10% | Over 200 grams |
The Government of India charges import taxes on gold brought into the nation by people. This import tax on gold is called customs duty. It is vital to know the customs tax rate of the Central Board of Indirect Taxes and Customs (CBIC). The customs tax rates differ for Indian citizens based on how long they stay in Dubai. Consider the table below to learn about the customs tax duty based on your duration of stay in Dubai:
| Length Of Stay | Duty-free Allowance | Payable Customs Duty |
|---|---|---|
| Not more than 1 year | No Allowance | 38.50% |
| 6 months to 1 year | No Allowance |
13.7% up to 1kg
|
| More than 1 year | For Male-Maximum of Rs. 50,000 For Female-Maximum of Rs. 1,00,000. |
13.7% up to 1kg
|
People who have stayed in Dubai for more than 6 months are permitted a duty revocation of 12.5%. Also, a social welfare surcharge of 1.25% on the gold they carry back to India.
The customs tax on gold bars is set by the quantity of the gold imported from Dubai, which is as follows:
For gold coins also, the customs duty is set by the quantity of the gold imported from Dubai, such as:
To calculate customs duty, it is vital to assess the gold value, add the applicable duty rate, and apply taxes on the duty amount. Gold bars, coins, and jewelry are valued based on the present global gold prices of 24K purity on the import duty. Based on this value, the customs departments will tell the exact duty slabs. It may range from 0% to 10%. However, mainly the rates applicable on gold imported from Dubai to India are as follows:
Proper documents like invoices of gold purchase and certificates proving quality and purity are needed by the customs to asses the exact value. If any passenger is not able to provide the exact information, they may have to pay penalties and confiscation in some situations. So, proper documents and clear communication are vital to prevent facing problems.
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Indians have to declare the amount of gold they have brought from Dubai after reaching the airport. To do the same, after reaching the airport, you must go to the customs declaration area. The green channel in the airport is for those who are carrying duty-free goods or luggage. In contrast, the red channel is for taxable goods. Hence, people who are carrying gold beyond the allowed limit must enter the red channel.
After that, you need to fill out the necessary form and declare your gold. Provide details about the quantity and value of gold along with the purchase receipts and certificates. If you have any gold that exceeds the duty-free limit, then declare that and be ready to pay the customs duty if it is applicable.
Failing to declare excess gold is like customs violation and may be treated as smuggling. If you do not declare the gold upon arriving at the airport, you may have to face consequences. As per the Customs Act of 1962, if you don't declare the excess go,ld it may lead to confiscation of your baggage. You may also have to pay a huge amount of penalty and face legal issues for not following the law.
If you wish to buy gold from Dubai and carry it to India, then you must keep these things in mind:
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The gold rate in Dubai is lower as compared to India. This is the reason why when Indians travel to Dubai, they tend to buy gold from there. However, the decision to buy gold from Dubai comes with its pros and cons. Below are the pros and cons of buying gold from Dubai to make it easier for you to reach a decision:
As per the Indian tax laws, a person can carry only a fixed amount of gold from Dubai. Now you have the answer to the question of how much gold is allowed from Dubai to India. So, this time, when you travel to Dubai, you can plan your purchase accordingly. However, keep in mind that if your purchase goes beyond the limit, you must pay the customs duty. Follow the rules and laws and take your belongings with you without facing any legal issues.
Yes, you can buy gold in dubai duty-free if you fulfill specific conditions. It includes buying gold within the permitted limit, staying in Dubai for more than six months, and claiming almost 85% of the total vat back by using the tax refund tourist scheme at places like Dubai international airport.
Yes, you can bring gold in your luggage from Dubai to India. However, there are some set limits and customs fees to keep in mind. A male passenger can bring up to 20 grams of gold, with the maximum value of gold being rs. 50,000. On the other hand, a female and children can carry up to 40 grams of gold; the maximum gold value must be rs. 1,00,000.
Yes, you have to declare gold at customs in India if you are carrying it beyond the duty-free limit. If you don’t declare the excess gold you are carrying, you may face penalties or confiscation of your baggage.
The male passengers can carry up to 20 grams of gold to india from dubai. However, a female passenger can carry up to 40 grams of gold. The duty-free limit applies only to gold jewelry and not gold coins, bars, biscuits, or jewelry with stones or pearls.
To check if your gold is real or not, you can search for a hallmark, which is a stamp that confirms the quality of gold. Go for a purity test, which is a quick and reliable way to certify the quality of the gold, and many stores in dubai provide free gold purity tests. Or else, use a karatmeter, which is a device that measures the purity of the gold and tells the gold’s karat or fineness level.
The customs duty on gold from dubai to india is calculated based on the type of gold, quantity, and duration of your stay. For gold bars between 20-50 grams, the customs duty is 3%. For gold bars weighing 1kg, the customs charge is 10%, and for gold bars that are less than 20 grams, there are no customs charges.
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