News18 Bengali | November 07, 2023, 13:12 IST
Since going to Dubai is easy now, many people want to buy gold and bring it back. But, it is also necessary to know how much gold is legally allowed to be brought from Dubai to India.
India has a long history of investing in gold, often valued as a means of financial security. According to the World Gold Council, there is a huge demand for gold in the Indian jewelery market. It has increased drastically by the second quarter of 2023.
On the other hand, the price of gold is often beyond the reach of the middle class. As a result, where gold can be found cheaply, there is speculation. In this context, the name of Dubai comes up first.
Dubai is a well-known city with one of the most popular gold shops or markets worldwide. Gold prices in Dubai are based on international gold prices, which guarantees a fixed price across every outlet. Now comes the inevitable question – is gold in Dubai really cheaper than this country?
Experts will say that the price of gold is actually not cheap, the difference is in the duty. As it is less, gold buyers in Dubai can benefit from falling prices. So from Dubai we can buy gold at lowest price. An example will make it clear.
Even though the price fell today, the price of 1 gram of 24 carat gold in Kolkata has reached Tk 6,136. On the other hand, the gold price of the same value is now Rs 4,478.29 in Indian currency in Dubai.
In fact the UAE government has already introduced a 5% VAT (value added tax) on gold and many other precious metals. However, due to weak demand and sales of gold, platinum and silver falling by 30 to 40 percent, implementation of the tax was delayed.
As a result, since going to Dubai is now easy, many people want to buy gold and bring it back. But, it is also necessary to know how much gold is legally allowed to be brought from Dubai to India.
How much gold can be legally brought from Dubai to India –
Dubai is undoubtedly a haven for all gold buyers across the globe. Anyway, the question “How much gold can we bring from Dubai” often arises in the mind of many. Those who travel to Dubai and wish to purchase gold from there and take it to India, must be aware of the limits for taking gold from Dubai to India.
Male travelers are allowed to carry a maximum of 20 grams of gold (maximum value of Rs. 50,000) into India and the limit for female travelers is up to 40 grams (maximum value of Rs. 1,00,000). If travelers in India are carrying gold jewellery, if it exceeds the prescribed limit, they will have to pay some duty on the gold.
Shipping gold from Dubai to India –
The Indian Central Board of Indirect Taxes and Customs has imposed certain restrictions on the import of gold from Dubai to India. Tourists prefer to buy gold from Dubai, mainly because of its excellent quality and low prices. One of the most famous places to buy gold in Dubai is the Deira Gold Souk.
A restrictive tariff has been imposed by the Indian government for several years, which has affected gold imports into India from Dubai and other cities in the UAE.
Things to know about moving gold from Dubai to India –
Gold price is lower in Dubai than in India. Being a traveler, one should be aware of the following conditions while carrying gold from Dubai to India – – All proof of purchase and other documents must be presented to the airport officials. This way problems with gold jewelery at the airport can be avoided.
– Custom duty on gold to be paid in India in a convertible foreign currency when the gold content exceeds the prescribed limit. – If gold bars are carried, it should have relevant documents. Also, there should be details like serial number, bar weight etc. – If one fails to follow any rules, there may be possibility of confiscation of gold or imprisonment of the person till verification of all documents is completed.
The following are the ways in which gold is taxed in India –
Ad-Valorem Duty Rate – Ad-Valorem duty rate is based on the value of gold rather than its weight. Fixed Rate of Duty – The fixed rate of duty is purely based on the weight or quantity of gold.
According to Indian tax laws, passengers can only bring a certain amount of gold from Dubai without any tax verification. Gold and silver from the international market can be brought into India only as jewelery or ornaments. As per Indian law, importation of gold or silver in any other form is prohibited.