Gold Tax, Import Duty & Custom Duty on Gold in India

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. 

Type of Gold Allowed

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.

Also Read: How to Buy Gold Using Personal Loan

Limit of Duty-free Gold

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. 

Male Travellers

• You can carry 20 grams of duty-free gold from overseas 
• You do not have to pay duty on ₹50,000 worth of gold purchase 
• A 3% customs duty applies on gold quantities between 20 and 50 grams 
• A 6% customs duty applies on gold quantities between 50 and 100 grams 
• A 10% customs duty applies on gold quantities above 100 grams

Female Travellers

• You can bring up to 40 grams or ₹1 Lakh worth of duty-free gold in India 
• A 3% customs duty applies on gold quantities between 40 and 100 grams 
• A 6% customs duty applies on gold quantities between 100 and 200 grams 
• A 10% duty applies on quantities above 200 grams

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. 

Custom Tax Charged on Types of Gold

Here are the different rates of import tax on gold in India for variable quantities:

• No customs charges apply on less than 20 grams of gold bars for passengers 
• 3% customs charges apply for gold bars of 20 to 100 grams
• On purchase of 1kg of gold bar, 10% customs charges apply 
• Customs department levies 10% charges on a 100-gram gold coin 
• If the gold coin is between 20 and 100 grams, then a 10% duty applies 
• There are no charges on less than 20 grams of gold coins

Also Read: Gold Loan vs Instant Loan

How to Calculate Customs Duty on Gold in India

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: 

• Type of gold item 
• Quantity of gold 
• Purity of gold 
• Selling price of the item in the importing country 

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.

Revisions After the July 2024 Budget 

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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FAQs on Customs Duty on Gold

How much is the customs duty on gold in India?

The current rate for coin, bar or gold jewellery import duty in India is 6%. 

How much gold is allowed in Indian customs?

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.  

What is the customs duty rate in India?

It is a tax imposed on imported goods by the Central Board of Excise & Customs. 

How much is the gold price after budget?

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.