Gold has always had its importance in Indian culture, especially during festivals like Diwali and Dhanteras or during weddings. Rising gold prices in India, along with taxes like GST and customs duties, can make it an expensive purchase.
For this reason, most Indians on a trip to Dubai buy gold there, as it costs far less due to low taxes and import duties. But how much gold can you bring from Dubai to India legally? Let us understand the rules and regulations and get a few tips to keep you from getting into any legal trouble.
Why is Gold Cheaper in Dubai?
Gold is a paradise for lovers, and Indians are under no exception to that charm. The prices of gold in Dubai are lower than in India, primarily due to minimal import duties and no GST at all. For example, more than 3% of GST on gold is charged by India but not by Dubai. There are also lower making charges for gold jewelry in Dubai; hence a piece of 24-carat gold is 5% to 7% cheaper than in India. Such price differences make Dubai a hot destination for Indians looking for gold.
How Much Gold Can I Bring from Dubai to India?
It is important to note the duty and exceptions you can bring when there is gold from Dubai. The following are really useful tips:
Short Trips (Under 6 Months):
- Indian male passengers may bring duty-free gold worth up to ₹50,000.
- Indian female passengers may bring duty-free gold worth up to ₹1,00,000.
Long Stays (More Than 6 Months):
An Indian national returning from Dubai after a continuous stay of more than six months can take in 1 kg of gold in personal baggage, but customs duty would apply to the entire quantity claimed.
What Happens If You Exceed the Limit?
Exceeding the prescribed gold limit leads to penalties deterrent under the law. Therefore, smuggling gold above the limit prescribed is punishable with imprisonment up to 7 years, fine, and confiscation of gold under Section 135 of the Customs Act.
Additionally, if the offenders are charged under the Foreign Exchange Management Act (FEMA), they may be sentenced to imprisonment for up to 1 year and subject to fines.
An Interesting Case: Kannada Actress Ranya Rao
The gold smuggling issue came to the forefront through the arrest of actress Ranya Rao at the Bengaluru airport. She reportedly hid gold weighing 14.8 kg and worth ₹12.56 crore in her clothes. This episode emphasizes obeying customs laws and avoiding illegal means.