This article talks about the limits and regulations for importing gold from foreign countries to India, especially for non-resident Indians (NRIs). It also provides some statutory provisions and tips for smooth customs clearance.
Gold is a precious and popular investment option
- Gold is a precious metal that is in high demand in many forms such as ornaments, coins, and bars.
- People worldwide want to save resources and invest in gold because of its drastic increase in market value.
- India is one of the world’s largest gold importers and many NRIs prefer to buy gold from Dubai, which has lower gold prices than India.
NRIs have to follow the rules and limits for bringing gold to India
- The Indian government, specifically the Directorate General of Foreign Trade (DGFT) and the Customs Department, has set the limits and regulations for importing gold from foreign countries to India.
- Non-disclosure of precise quantities or exceeding the allowed limits can result in penalties, taxes, and possibly the seizure of gold.
- It is important to provide proper documentation proving purchase, purity, and value of the gold to avoid difficulties at Indian ports and airports.
The duty-free gold carrying limits vary for different passengers
- For male passengers, the duty-free limit is up to 20 grams of gold worth up to INR 50,000. If the limit is exceeded, the duty rates range from 3%, 6%, or 10% depending on the extra gold quantity.
- For female passengers, the duty-free limit is up to 40 grams of gold worth up to INR 100,000. If the limit is exceeded, the duty rates are the same as for male passengers.
- For children, the duty-free limit is also up to 40 grams of gold. If the limit is exceeded, the duty rates are 3% for gold from 40 grams to 100 grams, 6% for gold from 100 grams to 200 grams, and 10% for gold more than 200 grams.
- The duty is calculated using the current international gold rates.
There are some statutory provisions for exemption of duty on gold
- As per the General Exemption No.162 of Indian Customs Rule, gold bars and coins with manufacturer’s or refiner’s engraved serial number and weight expressed in metric units are exempted from duty up to Rs. 300 per 10 grams.
- Gold in any form other than bars and coins, including ornaments, but excluding ornaments studded with stones or pearls, are exempted from duty up to Rs.750 per 10 grams.
