Gold: Why Is Dubai Gold Restricted? How Much Can You Legally Bring?
The recent incident where actress Ranya Rao was caught with nearly 14 kg of illegal gold has sparked a lot of interest. After this event, many are asking: Why are there restrictions on bringing gold from Dubai? Why is Dubai gold so popular? How much gold can you legally bring from Dubai? And what are the taxes on gold in India? Let’s explore the answers!
Why is Dubai Gold Special?
Compared to India, gold prices in Dubai are much lower. Moreover, Dubai does not impose taxes on gold purchases. There is a significant price difference, around ₹7,000 to ₹8,000, between gold purchased in India and gold bought in Dubai. This price advantage is one of the main reasons people choose to bring gold from Dubai. However, bringing gold from Dubai requires you to follow strict customs rules. You need to pay an import duty to bring gold into India. Currently, the import tax is 6%, which leads many people to try and bring gold illegally to avoid this tax, but they often get caught at the airport.
How Much Gold Can You Legally Bring From Dubai?
According to the 1967 Passport Act, Indians who have been in Dubai for more than six months are allowed to bring up to 1 kg of gold legally, after paying the required customs duties. For men, they can bring up to 20 grams of gold worth up to ₹50,000 without paying duty. Women can bring up to 40 grams of gold worth up to ₹1 lakh. Children under the age of 15 are allowed to bring up to 40 grams of gold. Along with these limits, you also need to submit documents regarding your gold purchase to customs authorities.
What Are the Customs Duties for Bringing More Gold?
If you wish to bring more gold than allowed, you will have to pay additional customs duties based on the 1967 Passport Act. Here are the customs duties that apply:
For Men:
- 20 to 50 grams: 3% customs duty
- 50 to 100 grams: 6% customs duty
- Over 100 grams: 10% customs duty
For Women and Children:
- 40 to 100 grams: 3% customs duty
- 100 to 200 grams: 6% customs duty
- Over 200 grams: 10% customs duty
Conclusion
If you follow the customs rules, bringing gold from Dubai will be hassle-free. However, if you attempt to bring gold illegally to avoid paying duties, you will likely face problems. Many people, unaware of the rules, get caught by customs officers at airports. To avoid trouble, make sure to follow India's customs regulations when bringing gold from Dubai.
