As the festive season kicks off in India, many people are looking to buy gold jewelry, and some are even asking their family members in Dubai to bring gold back when they visit for the festivities. But there are tax implications to consider when bringing gold jewelry from Dubai to India.
Here’s what you need to know:
Profit Considerations:
- While gold prices in Dubai are generally lower than in India, importing a large amount of jewelry may not be very profitable due to additional costs like making charges, import duty, currency conversion, tax rules, and GST.
Allowed Amount Without Tax Scrutiny:
- Indian tax rules permit individuals to bring a small amount of gold jewelry from foreign markets, such as Dubai, without attracting tax scrutiny.
Forms of Gold Allowed:
- Gold and silver from foreign markets can only be bring in the form of jewelry or ornaments. Importing gold or silver in any other form, such as coins or bars, is not allowed under Indian law.
Limit for Male Indian Passengers:
- A male Indian passenger who has lived abroad for more than one year can bring up to 20 grams of jewelry worth Rs 50,000 without paying duty when it’s part of his legitimate baggage.
Limit for Female Passengers:
- Female passengers can bring up to 40 grams of jewelry, with a value cap of Rs 1 lakh.
It’s important to be aware of these limits and the rules set by the Central Board of Indirect Taxes & Customs (CBIC) when bringing from Dubai to India. Keep in mind that these allowances only apply to jewelry, and other forms like coins and bars are not eligible for duty-free import.
Before you plan to bring jewelry from Dubai, it’s a good idea to understand the tax regulations to avoid any unexpected surprises.
