How Much Gold Can You Get from Dubai?
How much gold can I bring from Dubai to India? This is one of the most common questions that Indians traveling to Dubai ask at forums. Indians love buying gold and holding it for their dear life. If you are also traveling to Dubai and planning to bring in some foreign gold, you should probably consider the limitations on it. As you may know, anything precious coming to India from a foreign land attracts some import duty and customs fee, we are here to discuss that. Also, in this article, we are explaining about how much gold can a person have. You can also learn about the tax implications on imported gold from this article.
How Much Gold Can You Get from Dubai to India?
The amount of gold that you can bring from Dubai to India depends upon your gender, the time you have spent in Dubai, and the form in which you are bringing gold to India, that is, whether it is gold jewelry or gold coins and bars. All the rules and regulations regarding importing gold from foreign nations are governed by the Central Board of Indirect Taxes and Customs.
The board, on April 1, 2016, announced that any person living in Dubai for more than a year can bring gold jewelry with them. However, the board set a limit to the weight and value of jewelry that the person can bring. So, according to the law, a male passenger traveling from Dubai to India can bring upto 20 grams of gold worth not more than Rs. 50,000. On the other hand, a female traveler coming to India from Dubai can carry a maximum of 40 grams of gold jewelry worth not more than Rs. 1,00,000. In these cases, there won’t be any import duty applicable on the gold jewelry that you are bringing in India.
There is no customs duty on gold jewelry that you bring from Dubai to India. However, customs duty is applicable in case you are in possession of gold in any other form like coins, bars, etc. For gold bars, you may have to pay an customs duty at the rate of Rs. 300 per 10 grams of gold + a 3% edu cess charge. Similarly, if you are bringing gold in the form of coins or any other form apart from jewelry, you will need to pay a duty at the rate of Rs. 750 per 10 grams + a 3% edu cess charge.
Is There Any Import Duty on Gold?
Yes, import duty may be applicable on gold imports if a person residing in Dubai for more than six months is bringing more than one kilogram of gold coins and bars in their luggage. If the weight of the gold coins and bars exceeds 1 kilogram, a custom charge of 12.5% is applicable. In case, a passenger traveling to India from Dubai is carrying more than one kilogram of gold without being in Dubai for at least six months, they are obliged to pay a customs charge of 36.05%. In addition to this, the UAE Embassy has regulated the maximum amount of gold that can be brought to India at 10 kilograms, including jewelry, coins, bars and so on.
How Much Gold Can a Person Have?
Now that you know how much gold can you bring from Dubai to India, you may want to know if it is legal to hold that much amount of gold in India. The answer depends upon the gender of the possessor and the proof of the source. In India, you can hold as much gold as you want, as long as you are able to justify the source of it.
The Central Board of Direct Taxes oversees the matters related to gold and other precious metals. It has highlighted varying amounts of gold that a person can hold without the tax authorities questioning the source of income. A married woman is allowed to hold upto 500 grams of gold without coming on the income tax radar. On the other hand, an unmarried woman can hold up to 250 grams of gold without having to produce proof of their income source. Then men, whether married or unmarried, can hold only 100 grams of gold.
In case you have received gold ornaments as inheritance or gifts from your relatives and loved ones, you must have a receipt of any other proof in your name.
What If You are Holding More Gold than the Limit?
As we stated above, there is no such limit to holding gold as long as you are able to justify the source of your income. If a person fails to produce a proof of investment and proof of income, the income tax authorities can seize the excess amount of gold that you have. To avoid this, it is always advisable for gold holders to keep transaction proofs of their investments, or bills issued by the jeweler or the company that you are buying gold from. Also, it is good to make the buying and selling of your gold assets through debit cards and credit cards, that is, white money. If buying gold with cash, you must not make a purchase of more than 2 Lakhs.
So, on your next trip to Dubai, you now know how much gold can you carry to India. We advise you to follow the rules and regulations set by the Central Board of Direct Taxes and the Central Board of Indirect taxes in order to prevent any unnecessary hassle in the immigration process. Also, it is important for you to declare your gold-based wealth and capital gains while filing your tax returns.
Also Read: How to Sell Gold Without Paying Taxes?