With the start of the festival season, Gold jewellery buying in India has started picking up and it is expected to gain further speed in the days leading to Diwali. While buyers are looking for offers and discounts on Gold purchases, some families are even asking their members living in Dubai to bring some Gold with them when they return home for festivals. However, there are some tax implications for bringing Gold jewellery from Dubai.
If you are in Dubai and planning to bring gold jewellery with you during your return journey then you should know the following facts and tax rules:
Not much profit in importing a large amount of Gold Jewellery
The price of gold is generally lower in Dubai compared to India. But importing large amounts of jewellery from Dubai may not be very profitable because of cost multipliers like making charges, import duty, currency conversion costs, tax rules and GST, according to experts.
How much gold jewellery is allowed without tax scrutiny
Under Indian tax rules, individuals are allowed to bring a very small amount of gold jewellery from foreign markets like Dubai without tax scrutiny.
Gold and silver from foreign markets can be brought only in the form of jewellery/ornaments. Indian laws do not allow the import of Gold or silver in any form other than ornaments.
Tax experts say that a male Indian passenger, who has been residing abroad for over 1 year, can bring up to 20 grams of jewellery worth Rs 50,000, free of duty in his bonafide baggage. A lady passenger can bring up to 40 grams of Jewellery with a value cap of Rs 1 lakh.
The limits prescribed by the Central Board of Indirect Taxes & Customs (CBIC) for an Indian passenger coming back to India after a period of more than 1 year are detailed as follows:
“The Central Board of Indirect Taxes and Customs (CBIC) in India prescribes the limit on the quantum of gold that can be imported into India without drawing Taxmen’s ire. However, CBIC has allowed duty-free allowance on gold only in the form of jewellery and other forms such as coins, bars, bullions etc. are disallowed,” says Dr Suresh Surana, Founder, RSM India.
