India and Dubai have a close connection. Did you know that the major population of Dubai is made up of Indians? For decades, Indians have left their homeland to seek better job prospects and life in Dubai. Apart from this, Dubai is a popular holiday destination for Indian tourists as well. More than 2 million tourists visit Dubai every year. Another reason Dubai is popular with Indians is gold. The yellow metal holds a lot of significance to Indians, and Dubai is one of the best places to buy gold. The price of gold is less in Dubai as compared to India (almost 5% to 7%), and the making charges are also less in the UAE. Moreover, Dubai offers an amazing collection of gold jewelry, making buying gold one of the favorite Dubai activities for Indians. However, if you are planning to purchase gold in Dubai to bring back to India, you need to be aware of the limits, rules, and duties levied by the Central Board of Indirect Taxes & Customs (CBIC), including how much gold allowed from Dubai to India, duty-free allowances, and more.
Can Indians Bring Gold from Dubai?
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The answer to the above question is yes. Indians can buy gold in UAE or Dubai and bring it back to India. However, the amount of gold one can buy and whether the person is eligible for gold allowances will depend on various factors like the duration of your stay, your gender, the type of gold you have purchased, etc.
- Indians who have lived in Dubai or anywhere abroad for more than one year are eligible for traveler gold allowances for a limited amount of gold jewelry (they can get up to 1 kg gold).
- Indians who are traveling back to India after staying in Dubai or abroad for more than six months can bring gold up to 1 kg. However, they are not eligible for traveler gold allowances and will have to pay some duty fees.
- Indian travelers or tourists who have been in Dubai for a short period of time (less than six months) must pay a high duty fee on gold.
- Indian women are eligible to bring more amount of duty-free gold jewelry than Indian men.
- The traveler’s gold allowance is only applicable for gold jewelry and not for gold coins, gold bars, or gold biscuits.
What are the Duty-Free Allowances for Gold from Dubai to India?
If you are a person residing in Dubai or anywhere outside India for more than a year, you are eligible for duty-free gold allowances. These allowances are set by the CBIC and should be adhered to strictly.
| Traveler | Duty-Free Limit | Maximum Cost/Value of Gold |
| Male | 20 grams | Rs. 50,0000 |
| Female | 40 grams | Rs. 1,00,000 |
| Children (2-15 years) | 40 grams | Rs. 1,00,000 |
Male Travelers: Indian male travelers are eligible to carry duty-free gold up to 20 grams in their luggage while traveling from Dubai to India. The total cost of the gold jewelry should not be more than Rs. 50,000.
Female Travelers: Indian female travelers can carry a maximum of 40 grams of gold jewelry without the need to pay any duty. The total price of the gold women carry should not be more than Rs. 1,00,000.
Children Travelers: Children traveling from Dubai to India can also carry around 40 grams of gold jewelry for gifts or personal use. Children carrying gold should be accompanied by parents or guardians. It is important to provide proof of the relationship between the children and the adults they are traveling with. An important thing to note is that children can only carry gold jewelry and not gold coins and bars.
Custom Duty Charges for Gold Jewelry from Dubai to India
If the gold you are carrying is more than the duty-free limit, you will have to pay customs duty on the excess gold you are carrying.
Indian Male Passengers: If you are a male passenger who is carrying more than 20 grams of gold jewelry, you will have to pay the following charges:
- 20 grams to 50 grams: 3%
- 50 grams to 100 grams: 6%
- Over 100 grams: 10%
Indian Female and Children Passengers: The following are the duty charges for women and children who are carrying more than 40 grams of gold jewelry.
- 40 grams to 100 grams: 3%
- 100 grams to 200 grams: 6%
- Over 200 grams: 10%
Custom Duty Charges for Gold Bars and Gold Coins
If you are an Indian traveler staying in Dubai for more than a year and are carrying less than 20 grams of gold coin or gold bars, you do not have to pay any duty. However, if the amount of gold coins or bars you are carrying is more than 20 grams, you will have to pay some duty charges.
- If you are carrying gold bars between 20 grams and 100 grams, you will have to pay 3% custom duty.
- If you are carrying gold bars less than 1 kg, a 10% custom duty would be levied on you.
- If you have gold coins weighing between 20 grams and 100 grams, you will have to pay a 10% duty fee.
Customs Duty on Gold Based on Duration
The above custom duty-free allowances and duty charges are for Indians living in Dubai or UAE for more than a year. In case you are living in Dubai for 6 months to one year or less than 6 months, the duty charges would be different for you.
Indians Returning from Dubai After 6 Months to One Year: There is no duty-free allowance for Indians who are bringing back gold after staying in Dubai or abroad for more than 6 months. However, you are allowed to bring up to 1 kg of gold, although you need to pay taxes up to 13.75%.
Indians Returning from Dubai Before 6 Months: Indians who have stayed in Dubai for less than 6 months must pay customs duty of 38.5% for the gold they get from Dubai to India.
What is the Gold Declaration Procedure at the Airport?
Indian passengers traveling from Dubai to any of the Indian airports can choose two channels depending on whether they have dutiable gold in their luggage. If the gold you are carrying is within the duty-free limits, you can move to the green channel. On the other hand, if the gold you are carrying is beyond the duty-free limit, you need to go to the red channel.
- You need to first fill in the Customs Declaration Form, where you have to provide details like the weight and value of the gold you are carrying.
- To support the Customs Declaration form, you must submit a few documents like passport and proof of your stay in Dubai (residence permit, boarding passes, etc.)
- It is extremely crucial to provide gold purchase receipt or invoice that includes the seller’s name and location, purity and weight of the gold, date of sale, and the total purchase price.
- Once you have provided all the information and documents, the customs officer will make the calculations to assess the value of the gold depending on its purity, weight, price on the day of import, and other factors.
- The next step is to make the payment for the applicable custom duty on gold from Dubai to India, depending on the calculations made by the customs officer. You will receive a receipt for the payment. You need to keep it safe as proof of payment.
Conclusion
Buying gold in Dubai is a great way to save money for Indians. However, it is important to know about the rules, duties, and limitations, so that you can prevent paying more money as a duty charge at the airport in India for the gold you purchased. Always check with the current customs rules and regulations on gold purchase from Dubai before you buy gold in the emirate city, so that it does not exceed the budget for your Dubai trip cost from India.
Frequently Asked Questions
Q. Which are the best places to buy gold in Dubai?
Q. How much gold can one carry from Dubai to India?
Q. What will happen if I do not disclose excess gold while traveling from Dubai to India?
Q. Do I have to declare the gold jewelry if I am wearing them while traveling from Dubai to India?
Q. How can I avoid problems at customs while traveling to India with gold?
- Always declare excess gold at the customs
- Produce the purchase invoices and certificates provided by the jeweler in Dubai
- Do not try to hide the gold. Always be transparent about your purchases.
- Update yourself about the latest laws and rules regarding gold custom duties.
