Indian expats returning from Dubai: Why customs duty on your gold rises with time

Dubai: For Indian expats flying back from Dubai, bringing gold home is common. But few realize that the customs duty you pay depends not only on the weight and form of gold but also on how long you’ve been away. The longer your stay abroad, the more customs rules shift — sometimes in your favour, sometimes not.

Duty-free allowance after one year abroad

If you’ve been outside India for over a year, you get a small duty-free benefit — but only for jewellery:

• Men: Up to 20g, worth ₹50,000

• Women: Up to 40g, worth ₹1,00,000

This allowance does not apply to coins, bars, or biscuits.

If your stay is less than a year

The rules change sharply for shorter stays:

More than 6 months, but under 1 year

• Gold imports attract a concessional duty of 13.75% (Basic Customs Duty + Social Welfare Surcharge).

• You can bring up to 1kg of gold in any form at this rate.

Less than 6 months

• Duty shoots up to about 38.5%.

• There’s no duty-free allowance at all, not even for jewellery.

Extra slabs beyond duty-free limits

Even if you’ve been abroad for over a year, bringing jewellery above the exemption triggers duty, charged on a slab basis:

Men

• 20–50g: 3%

• 50–100g: 6%

• Over 100g: 10%

Women

• 40–100g: 3%

• 100–200g: 6%

• Over 200g: 10%

What every expat must keep in mind

• Always declare gold beyond your allowance at the Red Channel. Undeclared gold risks confiscation, fines, or action under the Customs Act, 1962.

• Carry invoices with details of weight, purity, and price. Customs uses daily international gold rates, but receipts prove purchase legitimacy.

• Pay duty smartly: Use foreign currency or credit cards with low transaction fees to save on charges.

• Jewellery only qualifies for duty-free; bars, coins, and biscuits almost always attract duty.

Why time abroad changes duty rules

These rules are set by the Baggage Rules, 2016, under India’s Ministry of Finance, Central Board of Indirect Taxes and Customs (CBIC). They divide travellers into three categories:

• Less than 6 months: No benefit, high duty.

• 6–12 months: Concessional duty on up to 1kg.

• More than 1 year: Gender-based duty-free jewellery allowance.

Bottom line for UAE expats

Bringing gold from Dubai is only rewarding if you know the slabs. Stay longer, and you may qualify for exemptions — but bring too much or skip the paperwork, and you risk heavy duty and penalties.

Smart planning, receipts in hand, and full disclosure are the only way to avoid a costly surprise at Indian airports.