The Indian Association of Sharjah has requested the Indian government to remove the limit on the maximum value of gold that NRIs can bring into India from abroad.
The Indian Association of Sharjah (IAS) has formally written to India’s Finance Minister, Nirmala Sitharaman, requesting, in a memorandum, that the Indian government remove the uncertainty in the Customs Baggage Declaration Regulations for the benefit of non-resident Indians (NRIs) bringing gold into India.
The amount and the value of gold that Indians can bring into India from abroad are according to the rules set by Notification No. 31/2016-Customs (N.T.), Clause 3 (b).
The need to revise the maximum limits arises as gold prices have increased by over 250% in international markets since 2016.
The President of IAS has requested the FM that the value cap mentioned in the notification be deleted, thereby aligning the regulations with the intent of allowing the specified weight of gold ornaments, irrespective of market fluctuations in gold prices.
As per the existing regulations in place since 2016, a lady passenger is allowed to carry up to 40 grams of gold ornaments, with a value cap of Rs 1 lakh, while men may carry up to 20 grams of gold ornaments, with a maximum value cap of Rs 50,000, without paying duties.
When the above notification was issued in 2016, the price of gold (22 kt) was approximately Rs 2,500 per gram. Accordingly, the value caps of Rs 1,00,000 and Rs 50,000 were stipulated.
However, the current price of gold (22 kt) is approximately Rs 10,041 per gram, which means that 20 grams and 40 grams of gold are presently valued at around Rs 2,00,820 and Rs 4,01,640, respectively.
This means, at current prices, to bring in duty-free gold, women can bring not more than 10 grams, even though they are allowed to bring up to 40 grams.
NRI’s Bringing Gold to India
According to IAS, this mismatch is creating problems for the Indian travellers. “Expatriate Indians are increasingly facing hardships due to this outdated value cар. The mismatch between the stipulated value and the present market reality often leads to unnecessary disputes at customs checkpoints, inconvenience for genuine travellers and, regrettably, it also opens the door for corrupt practices.
Such situations not only cause distress to Non-Resident Indians but also place an avoidable burden on customs officials in carrying out their duties,” says Nissar Thalangara, President, Indian Association Sharjah, in the memorandum sent to the FM.
Within the duty-free limit, purchasing gold in Dubai is less expensive. The savings are limited for greater quantities. However, if you intend to purchase gold in bulk while on a family holiday in Dubai, be sure to compare the price of gold in India and Dubai gold price before making your purchase.
How Much Gold Can NRIs Bring into India?
The amount of gold Indians can bring into India depends on their gender and the duration of their stay abroad. Also, there is no duty levied up to a certain limit, beyond which customs duty applies.
Indian Passport Holders can bring up to 20 grams of gold (maximum value up to Rs 50,000) duty-free, while women can bring up to 40 grams of gold (maximum value up to Rs 1,00,000) duty-free. Additionally, Children under the age of 15 years can bring gold ornaments of a maximum of 40 grams (maximum value up to Rs 1,00,000) without paying a customs duty.
The maximum gold allowed via check-in baggage, if declared and duty is paid, is up to 1 kg of gold (1,000 grams). You should have stayed abroad for at least 6 months to bring 1 kg under customs rules.
24 carat gold price today in India is Rs 1,09,540 for 10 grams. But the maximum duty-free gold for men is allowed till Rs 50,000. It means you can buy just around 5 grams of gold abroad at current prices to bring to India.
To verify that, be ready to show the customs officers all the purchase invoices with the price and purity.
Customs Duty is a broader term that includes all taxes imposed on imported goods. In gold imports, the import duty is 6%, but the total customs duty is around 9% after adding cess and GST.
How are customs duty rates on excess gold calculated
Custom duty rate of 3% when the gold quantity is 20 grams to 50 grams for males/ 40 grams to 100 grams for females and children
Custom duty rate of 6% when the gold quantity is 50 grams to 100 grams for males/ 100 grams to 200 grams for females and children
Custom duty rate is 10% when the gold quantity is over 100 grams for males/ over 200 grams for females and children