World
India
Gold smuggling has once again captured public attention in India, following the 2025 arrest of Kannada actress Ranya Rao. Once popularized in Bollywood films of the 1970s, smuggling of gold from abroad especially Dubai has made a strong comeback. But is it really illegal to bring gold from countries like Dubai or London? Not always. The key lies in knowing the customs rules, declaring gold properly, and understanding the limits of duty-free allowances.
Why Gold Smuggling from Dubai Is Rising Again
Gold is significantly cheaper in Dubai compared to India—by almost 8-9%. According to Dr. Renisha Chainani, Head of Research at Augmont, “People often bring gold from Dubai because it has lower gold prices, lower making charges, and no VAT on exports,” reported by Media. This price difference tempts many travelers to purchase gold in Dubai and carry it home, sometimes legally and other times not.
The Legal Way to Bring Gold from Dubai or Abroad
Bringing gold into India is not illegal if done properly. But travelers must declare all gold and imported goods upon arrival. Customs officials often inspect passengers at airports, especially when returning from popular gold-buying destinations.
The maximum quantity of gold a passenger can bring, if declared and after paying customs duty, is 1 kg (1,000 grams). However, the eligibility criteria to carry this amount is strict. You must be an Indian passport holder who has stayed abroad for at least 6 months. Any short visit within those six months—up to 30 days—will be ignored in the calculation.
As clarified by Ayush A Mehrotra, Partner at Khaitan & Co., “An eligible passenger can import gold (except ornaments with stones or pearls), subject to payment of customs duty and compliance. An ‘eligible passenger’ is defined as someone returning to India after a continuous stay of at least six months.”
What Is the Duty-Free Limit for Gold from Dubai?
Not everyone can carry 1 kg gold for free. For duty-free gold, Indian male travelers can bring up to 20 grams of gold worth ₹50,000, while female travelers are allowed up to 40 grams of gold valued at ₹1,00,000.
At the current rate, 24-carat gold in India is ₹90,000 for 10 grams. So practically, men can bring only 5 grams and women about 10 grams of gold duty-free.
Children under 15 years of age are also eligible to bring up to 40 grams of gold worth ₹1,00,000 without paying customs duty.
But remember: you must show purchase receipts and certificates of gold purity if questioned by customs.
Want to Bring More Than the Duty-Free Limit?
If you plan to bring more gold than the duty-free limit, it’s still allowed, but you must declare it and pay customs duty.
Here’s how duty rates work:
-
3% duty: For 20-50 grams (men) or 40-100 grams (women & children)
-
6% duty: For 50-100 grams (men) or 100-200 grams (women & children)
-
10% duty: For over 100 grams (men) or over 200 grams (women & children)
Total customs duty includes import duty, cess, and GST—roughly 9% in total.
Is Buying Gold in Dubai Cheaper Than India?
Let’s compare prices and see the final cost with and without duties:
-
In India: 10 grams of gold costs ₹90,000.
-
In Dubai: The same 10 grams costs ₹82,000.
If the gold brought from Dubai is within the duty-free limit, then the landed cost is ₹82,000—clearly cheaper.
If you bring gold beyond the duty-free limit, then taxes apply:
-
6% Basic Customs Duty (BCD) = ₹4,920
-
Taxable Value = ₹82,000 + ₹4,920 = ₹86,920
-
3% GST on ₹86,920 = ₹2,607.60
Total Duty Payable = ₹4,920 + ₹2,607.60 = ₹7,527.60
Final Landed Cost in India = ₹89,527.60
Compared to ₹90,000 in India, the savings are minimal—just about ₹473. This makes buying gold from Dubai worth it only if you’re within duty-free limits or planning to buy in bulk while abroad.
With gold prices rising and customs tightening their checks, bringing gold to India from Dubai is no longer a simple matter of personal choice. While legal if done correctly, travelers must follow Indian customs rules strictly. Actress Ranya Rao’s arrest might just be a wake-up call for many. Whether for investment or gifting, understanding the rules before you fly can save you money—and trouble.
ALSO READ: Credit Card Spending Dips To 7-Month Low; Average Spend Falls To Rs 15,295, Says ACMIIL Report
