Q677. Husband & wife combining

customs duty exemption in India

Question: Hello Mr. Chand I have a question and would appreciate your response to help with our forthcoming trip to India. My wife and I will be arriving at Delhi airport in July 2014. My question is that can I combine the customs duty exemption amount with my wife and take one item of a higher value duty free. We will be traveling together and are of Indian origin. Also what exactly is the amount money wise that we can claim duty free for items purchased abroad. Look forward to an early response. Thanks Vivek Answer: Combining duty free allowance with other family members traveling together is not allowed by the customs authorities. To clarify with an example: • Let’s assume the duty free limit per passenger is Rupees 10,000/- for both you and your wife. If you take one item worth Rupees 19,000/- then even though your combined duty free exemption works out to Rupees 20,000/- the item will be assessed duty for the amount above Rupees 10,000/- o In the scenario above, as duty exemption amounts cannot be combined, customs duty and taxes will be charged on the Rupees 9,000/- (total value Rs. 19,000 less duty exemption Rs. 10,000 = Rs. 9000/-) In India, customs duty is payable on the value that is in excess of the duty free allowance for each passenger. • I believe the current duty free allowance per adult passenger of Indian origin is Rupees 35,000/- o Foreigners of non-Indian origin duty free allowance is Rupees 8,000/- • Generally the rate of customs duty in India is 35.7% charged on the value in excess of the applicable duty free allowance of the incoming passenger. However some rates of duty vary depending on the item being brought in. Check the Indian customs website for latest information on customs duties and duty free allowances of various categories of passengers.