Q389. Is there Customs Duty payable in India on Gold taken out of India?

Question: I am going to India next month. I know that I have to pay duty on gold that I am taking with me. If I want to buy jewelry from India, do I have to pay duty too?

Answer: There is no customs duty payable in India on jewelry purchased in India. Customs duties are charged on items imported into the country, not on items taken out of the country. (Export of goods for commercial purposes is not allowed as part of a passenger's baggage.)

It is always advisable to keep receipts of all your jewelry purchases in India. When a passenger leaves India with a large amount of jewelry, there is a chance that the authorities may question the passenger about where the jewelry was purchased and the source of funds used to make the purchase.

In the event you are taking more than $10,000 to India, a currency declaration must be made when you arrive. A currency declaration form is available at Indian airports on arrival and must be completed in cases where:

• The aggregate value of foreign exchange brought in by the passenger in the form of currency notes, bank notes, or travelers cheques exceeds US $10,000 or its equivalent; and/or
• The value of foreign currency notes exceeds US $5,000 or its equivalent (as per the Foreign Exchange Regulation Act, 1973).

Most people are aware of the $10,000 limit as this is in effect in many countries across the world. However, they may not realize that there is also a cash limit of $5,000 that applies to passengers entering India.