Kolkata: Though Dubai, a part of the UAE, is not connected directly with the Iran US conflict, it has become a victim of the conflict that began on Feb 28. Missiles and drones have hit different targets, one of which is the Dubai international airport. This has led to disruption in flights to and from Dubai airport. Now Dubai is one of the busiest in the world and the city is a trading hub of gold from where the precious metal is delivered to a number of countries in Asia and other parts of the world.
Gold is usually shipped in the cargo hold of passenger aircraft. It is very risky to send the precious metal by land routes to neighbouring countries from where it can be sent by air freight. For the traders it makes little sense to hold on to the metal since it also entails expensive storage charges. So bullion dealers in Dubai are offering gold at a discount, reports have stated. “The market remains at a discount, but in thin trade the variation is wide, ranging from about $10 to $30 per troy ounce,” a bullion dealer from Dubai was quoted in the media as saying. But do you know how much of gold can you bring duty free from Dubai into India, or from any other country for that matter?
Duty free gold rules
According to new baggage rules in India, a passenger entering the country after a trip abroad can bring only a limited quantity of gold without paying customs duty. However it depends on the gender of the passenger, who is bringing it.
If you are male, you can bring only up to 20 grams of gold/gold jewellery free from duty. If you are a female, the amount of duty-free gold entitlement rises up to 40 gms. Earlier, the ceiling was based on prices, but phenomenal rise in the price of the metal has prompted the government to switch to a quantity-based approach. However, passengers have to furnish purchase documents and details of purity for customs verification when they enter India.
If the gold exceeds the duty-free limit
If the amount of gold you are carrying far exceeds the duty-free ceilings, you will be allowed to enter but only after you pay the applicable duty at the airport. The passenger has to move through the red channel. Rules state that if the gold you bring is between 100 gms and 200 gms, the duty one has to pay is 6%. This duty jumps to 10% if the gold brought in is above 200 gms.
However, a crucial point to remember is that if you fail to move through the red channel and get caught with excess gold, you might have to pay penalties over and above the duty applicable. In certain situations, the gold or jewellery could be confiscated by customs officers.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)