India has a long history of Gold which is often valued as a means of financial security. As per the World Gold Council, there has been a great demand for gold in the market of Indian jewellery. It has drastically increased within the second quarter of the year 2023.
Dubai is a well-known city with the most distinctive gold souks or markets worldwide. The prices of gold in Dubai are based on international gold values, which assures fixed pricing across every outlet. Since the price of gold keeps fluctuating in the city, the gold buyers in Dubai may benefit from decreasing prices. Hence, they can purchase gold at the lowest possible rates.
The government of UAE has already introduced a 5% VAT (Value Added Tax) on gold and many other precious metals. But, owing to the small demand and a 30 to 40 per cent fall in the sale of gold, platinum, and silver, the tax implementation was rolled back. Want to know how much gold is allowed from Dubai to India? Keep reading further.
Gold Limit: How much Gold is Allowed from Dubai to India
Dubai is undeniably a haven for all gold buyers across the world. However, the question of “How much gold can we bring from Dubai” often arises in the minds of many people.
Anyone travelling to Dubai and wanting to take gold to India must be aware of the limit on gold allowed from Dubai to India. Male travellers are permitted to carry a maximum of 20 grams of gold (maximum value: 50,000 INR) to India, and for female travellers, the limit is up to 40 grams (maximum value: 100,000 INR).
If the passengers travelling to India carry gold jewellery that exceeds the set limit, they will need to pay some customs duty on gold.
Carrying Gold from Dubai to India: Other Details
The Indian Central Board of Indirect Taxes and Customs levied some limitations on the gold import from Dubai to India, as stated above. Tourists like purchasing gold from Dubai primarily because of the excellent quality and lower prices.
One of the most famous places to purchase gold in Dubai is the Deira Gold Souk. People from distinct communities come to Dubai and buy gold from this market.
Over the years, there has been a restrictive custom duty levied by the Indian Government. It has consequently impacted the gold import to India from Dubai and other cities of UAE.
Also Read: Guide on How to Buy Sovereign Gold Bond
Essential Things to Know About Carrying Gold from Dubai to India
In comparison with India, gold prices are lower in Dubai. Being a traveller, you should be wary of the following terms when carrying gold from Dubai to India:
- Present all the evidence of purchase and other papers to the airport officials. This way, you can avoid problems with the jewellery at the airport.
- Pay the custom duty on gold in India in a convertible foreign currency when your gold items exceed the set limit.
- If you carry gold bars, they should have the relevant inscriptions. Also, there should be details like the serial number, the bar’s weight, etc.
- Bring the gold items as checked baggage or import them as unaccompanied baggage at least 15 days before arrival.
- If you fail to follow any of the regulations, there may be possibilities of confiscation, persecution, or confinement till all the paperwork is done.
How is Custom Duty on Gold Applied in India?
The following are the ways the customs duty is applied to gold in India:
- Ad-Valorem rate of duty: The Ad-Valorem duty rate is based on the value of the gold rather than its weight.
- Specific rate of duty: The specific rate of duty is entirely based on the weight or quantity of gold.
Also Read: Guide You Need For Trading via Gold MCX
You now have the answer to the question, “How much gold Can I bring from Dubai to India without tax scrutiny.” As per Indian tax laws, passengers can bring only a fixed amount of gold from Dubai without any tax scrutiny. Gold and silver from international markets can be brought to India only as jewellery or ornaments. According to Indian laws, importing gold or silver in any other form is prohibited. Now that you know how cost-effective it is to buy gold from Dubai, you can plan to buy it there for the next festive season.