The customs duty on gold in India is levied by the government to increase the revenue and regulate the movement of goods. This is why many people opt to buy gold out of India, where they can save on paying high taxes and other charges.
Customs duty is a type of tax that you must pay when you import goods across the border. Depending on the amount and the purchase value of the good, customs duty rates vary. Knowing this is important for many reasons so that you don’t have to pay too high value as import tax on gold in India.
Read on to know the limit and how authorities calculate customs duty on gold in India.
When shopping for gold abroad, you’ll most likely stick to buying jewellery, bars or coins. All gold materials are allowed to Indian passengers under the Passport Act of 1967. They must declare the type and amount of gold in the prescribed form at the time of arrival based on which the customs officer will calculate the duty.
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In addition to the types of gold allowed, authorities have set different limits for travellers on carrying it. Here is an overview of how much duty-free gold you can carry in India.
For children under 15 years, the rule is the same as for female travellers. However, they must carry the paperwork and invoices to prove the purchase.
Here are the different rates of import tax on gold in India for variable quantities:
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The calculation is followed as per Rule 3(i) of the 2007 Customs Valuation (Determination of Value of Imported Commodities) Rules. According to these, the authorities calculate the price of gold based on the following factors:
Based on the value calculated, a fixed rate is applied from the appropriate duty slab. To verify this information, you must carry all the invoices, bills, and certificates for the purchase and purity of gold. After the calculation, you will need to pay the duty or the item will be confiscated under Section 111 of the Customs Act 1962.
During the July 2024 Union Budget, Finance Minister Nirmala Sitharaman announced a drop in customs duties on the import of gold, silver and platinum. Due to this, the current duties drop from 15% to 6%. This massive decline led to a reduction in the price of gold and made it cheaper for travellers planning to purchase gold across the border.
Knowing the current tax rate and customs duty on gold in India helps you understand if your foreign travel is worth the gold you’ve purchased. This way you can make a wise decision for your investment for a secure future.
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The current rate for coin, bar or gold jewellery import duty in India is 6%.
You can carry up to 1kg of gold in India, out of which 20 grams if duty-free for men and 40 grams for women.
It is a tax imposed on imported goods by the Central Board of Excise & Customs.
Shortly after the new rates for customs duty on gold import in India were announced, the price of gold dropped by over ₹4,000 to around ₹68,500 for 10 grams. As the rates keep changing
every day, you can check the latest price online.
