8. Importing Gold To India | Customs duty on gold jewelery taken to India . . .
Question: I want to find out how much gold(gold bars) can we carry to India without having to pay anything at the customs?Answer: There is no such thing as zero duty on gold taken to India by a passenger. The only duty free allowance that is allowed is on gold ornaments and is limited to Rupees 10,000 for men and Rupees 20,000 for women.Passengers can take gold to India provided they declare and pay the applicable customs duty in India. Up to 10 Kilograms of gold per passenger can be imported to India provided the period of stay abroad has been at least six months. (Note: the 10 kilogram amount has now been reduced to 1 kilogram, see update below)There are also provisions where passengers can pay for the gold abroad and collect the gold from bonded warehouses of the State Bank of India. This eliminates the need to personally carry gold while traveling. State Bank of India has branches in many cities overseas.The customs duty on gold imported to India is Rupees 250 per 10 grams of gold. (Previously I think duty was Rupees 400 for 10 grams and was reduced to Rupees 250 in the year 2001) - Has been changed, see the updated information on this page:The price of gold in India is competitive to world gold prices so do your homework before deciding to import gold to India.On April 20, 2007 I purchased some jewelry items in New Delhi from a store in Connaught Place. The rate they charged me for gold was calculated at Rupees 8700 for 10 grams of 22 carat gold.Update April 24, 2012
Import of Gold to India by passenger as part of baggage.
Previously, the customs duty structure on gold imported as baggage by persons of Indian origin was: 1.Gold bars, other than tola bars, bearing manufacturers or refiners engraved serial number and weight expressed in metric units and gold coins - Rs. 300 per 10 grams. + 3% Educational. Cess 2.Gold in any form other than what is listed in number 1 above including tola bars and ornaments, but excluding ornaments studded with stones or pearls - Rs. 750 per 10 grams. + 3% Educational. Cess*(see update on right side) Earlier this year,The government of India changed the customs duty structure on gold imported to India from the specific to value linked. The customs duty on gold was fixed at 2% of value. (For example, instead of the Rs. 300 per 10 grams fixed rate earlier, customs duty was to be calculated as a percentage of value) Update: Customs duty on gold taken to India increases in 2013: •Jan 2013, up from 4 percent to 6 percent•June 2013, up from 6 percent to 8 percent•August 2013, up from 8 percent to 10 percent of the gold value.•A 3% cess charge on top of the 10% gold customs duty should also be taken into account
10 Kg gold allowance reduced to 1 Kg
Passengers could legally take up-to 10 Kg of gold to India till April 17, 2012. However this amount has been reduced to 1 Kg from April 18, 2012. The maximum amount of gold a passenger can now take to India is limited to one kilogram of gold. Click HERE to view government press release in this regard.Carrying over 1 kilograms of gold to India is prohibited and will result in the gold being seized and the passenger prosecuted. According to a report published in two major Indian newspapers excerpts from their news report articles are provided below:Times of India dated April 21, 2012:A passenger is allowed to bring up to 1 kilogram of gold by paying duty. However, quantities greater than 1 kilogram are seized and the person carrying it is prosecuted under Customs Act 1962.May 11, 2012: Surprisingly, the official customs website still shows the limit as 10 Kg. per passenger! Some websites also still continue to show 10 Kg as the limit. The current duty free allowance on gold taken as jewelry is still Rs. 10000 for a male passenger or Rs. 20000 for a lady passenger. These amounts were set several years ago, with the price of gold in India now at almost Rupees 29,000 for 10 grams, there is hardly any real gold jewelery these days that can be bought for Rupees 10,000. No wonder gold jewelery is going out of style! its now purchased more and more for investment purposes. Gold these days, is too expensive to buy and with chain snatching in India on the rise, wearing gold is becoming unsafe also. Note:Gold duty free limits for India have been increased effective April 1, 2013. See update in right column.Note: The recent Union Budget proposed to doubled the customs duty on standard gold from 2% to 4% and on non-standard gold from 5% to 10% from the financial year 2012-13. Now as of August 2013, the rate has been increased to 10% plus 3% cess charge.Current price of gold in India for 22 & 24 Karat goldThe price of gold in India as on January 7, 2014 was reported to be Rupees 27,720 for 10 grams of 22 Karat gold and Rupees 29630 for 24 Karat gold.If you found this question of interest to you, then you may wish to also read Question/Answer number 425 titled ‘Problems with customs at airport when taking gold from Australia . . .>>
Updated - January 2014Customs duty on gold •Passengers arriving in India with gold bars are charged customs duty @ 6 per cent ad valorem plus 3 per cent tax.•Passengers carrying gold jewelry are charged 10% customs duty plus 3% taxMarch 2013:Duty free allowance on gold brought in by passengers has been increased. The Rupees 10,000 gold jewelery value limit for male passenger will increase to Rupees 50,000 and for female passengers the duty free allowance on gold of Rupees 20,000 will increase to Rupees 100,000.
*Customs duty on gold Taking Gold to India? How much duty would I have to payThe previous customs duty on gold taken to India by passengers have been revised. For the year 2013 , changes are shown below. Please be advised to check with authorities to confirm the latest customs duties as rates can be changed at anytime by the government of IndiaThose taking gold to India or gold jewelery in excess of the allowable amount, can expect to pay duty @ 10% of the value of the gold value and another 3% of the applicable duty as education cess.How much gold can a passenger take to India?Many websites as April 26, 2013 still continue to show that passengers can take 10 Kg of gold to India. This is no longer true and was revised to 1 kilogram of gold for quite some time now. Do your homework before heading to India with 10 Kgs of gold!Taking Jewelry out of IndiaIndian citizens traveling abroad to attend wedding functions etc. where they wish to use their personal jewelry. Having an export certificate will help avoid problems with customs when you return to India with the Jewelry.When arriving in India with gold in excess of your duty free limit, don’t use the green channel to walk out. Passengers can be arrested if caught walking out without proper declaration.
Informing educating and connecting Indians across the globe . . . by Virendar Chand