Why is Gold Cheaper in Dubai?
Dubai is a favorite destination for Indians who want to buy gold. One major reason is the lower price of gold in Dubai compared to India. Unlike India, Dubai does not impose GST on gold purchases, and making charges are also much lower. This makes gold significantly cheaper, attracting Indian buyers.
Currently, the price of 24-carat gold in Dubai is around Rs 83,420 per 10 grams, while in India, it costs approximately Rs 88,750 per 10 grams. Similarly, the price of 22-carat gold in Dubai is Rs 77,590 per 10 grams, whereas in India, it is much higher. Due to this price difference, many Indians traveling to Dubai prefer to buy gold, but there are strict customs rules that need to be followed when bringing gold back to India.
How Much Gold Can You Bring to India Without Paying Duty?
The Central Board of Indirect Taxes and Customs (CBIC) has set clear rules on how much gold can be brought to India from abroad. These rules depend on various factors such as gender, duration of stay, and the form of gold being carried.
Gold Allowance for Indian Travelers
The rules for bringing gold to India vary based on gender:
For Male Passengers:
- Allowed to bring up to 20 grams of gold, not exceeding Rs 50,000, without paying duty.
- If bringing more gold, custom duty applies based on weight:
- 20 grams to 50 grams: 3% duty
- 50 grams to 100 grams: 6% duty
- More than 100 grams: 10% duty
For Female Passengers:
- Women can bring up to 40 grams of gold, worth up to Rs 1 lakh, duty-free.
- If carrying more than 40 grams, custom duty applies:
- 40 grams to 100 grams: 3% duty
- 100 grams to 200 grams: 6% duty
- More than 200 grams: 10% duty
For Children (Below 15 Years Old):
- Children are allowed to bring 40 grams of gold for personal use or gifts.
- Custom duty applies if exceeding this limit:
- 40 grams to 100 grams: 3% duty
- 100 grams to 200 grams: 6% duty
- More than 200 grams: 10% duty
Customs Duty Based on Length of Stay in Dubai
The amount of customs duty you pay also depends on how long you have stayed in Dubai:
- Less than 6 months: No gold allowance; 38.5% duty applies.
- 6 months to 1 year: No gold allowance; 13.7% duty on up to 1 kg of gold.
- More than 1 year: Allowed duty-free gold up to Rs 50,000 for men and Rs 1 lakh for women. Beyond this limit, 13.7% duty applies up to 1 kg.
Bringing Gold Coins and Bars to India
If you are bringing gold in the form of bars or coins, different customs rules apply:
Gold Bars:
- Less than 20 grams: No duty.
- 20 grams to 100 grams: 3% duty.
- More than 100 grams: 10% duty.
Gold Coins:
- Less than 20 grams: No duty.
- 20 grams to 100 grams: 10% duty.
- More than 100 grams: 10% duty.
How to Declare Gold at Indian Airports?
If the amount of gold you are bringing exceeds the duty-free limit, it must be declared at customs in Indian airports. Passengers carrying extra gold should follow these steps:
- Use the Red Channel: Passengers carrying more than the allowed limit must declare their gold at the customs counter in the Red Channel.
- Pay Custom Duty: After declaration, customs officers will calculate the applicable duty based on the value and weight of the gold.
- Avoid the Green Channel: This channel is only for passengers carrying goods within the duty-free limit.
What Happens If You Don’t Declare Gold?
According to the Customs Act, 1962, passengers who fail to declare excess gold may face penalties:
- The gold can be seized.
- A fine may be imposed.
- Legal action can also be taken against the passenger.
Important Documents Required for Bringing Gold to India
To avoid any trouble at customs, make sure you carry the necessary documents:
- Purchase Invoice: A proper bill showing the price and weight of gold.
- Purity Certificate: Proof of the gold’s purity.
- Identity Proof: Passport and visa details for verification.
Key Points to Remember Before Bringing Gold from Dubai
- Male passengers can bring up to 20 grams (Rs 50,000) duty-free.
- Female passengers can bring up to 40 grams (Rs 1 lakh) duty-free.
- People staying in Dubai for over 6 months get reduced customs duty.
- Customs duty starts from 3% and goes up to 10% depending on the gold quantity.
- Gold must be declared at customs if it exceeds the duty-free limit.
- Proper documents (invoice, certificate, ID proof) are mandatory.
By following these rules, travelers can bring gold to India legally and avoid unnecessary customs issues.
