If you or someone you know is traveling abroad and plans to return with gold or cash, it’s important to understand the Indian rules and regulations. Carrying more than the allowed amount without declaring it can lead to serious consequences, including heavy fines and even jail time. Let’s break down the rules in simple English.
How Much Gold Can You Bring from Abroad?
When you return to India from a foreign trip, you are allowed to bring a certain amount of gold without paying any customs duty:
Men can bring up to 20 grams of gold (about 2 tola).
Women can bring up to 40 grams of gold (about 4 tola).
Children below 15 years of age can also bring up to 40 grams of gold, but you must prove your relationship to the child.
This gold should be in the form of jewellery and must not exceed the given weight or a value of ₹50,000 for men and ₹1 lakh for women. This limit is duty-free, which means you won’t need to pay any customs tax on it.
You can bring gold in any form—jewellery, coins, or biscuits—but only up to the allowed limit. These rules are based on the Indian Passport Act of 1967.
Customs duty on bringing gold from abroad for male and female travellers. Here's a simplified summary:
For Male Travelers:
Up to 20 grams or ₹50,000 – No customs duty.
Between 20 to 50 grams – 3% customs duty.
Between 50 to 100 grams – 6% customs duty.
More than 100 grams – 10% customs duty.
For Female Travelers:
Up to 40 grams or ₹1 lakh – No customs duty.
Between 40 to 100 grams – 3% customs duty.
Between 100 to 200 grams – 6% customs duty.
More than 200 grams – 10% customs duty.
If you’re bringing gold from abroad, staying within the duty-free limit is best to avoid extra charges. If you carry more gold, you must declare it at customs and pay the required duty.
What Happens If You Bring More Gold Than Allowed?
If you bring more gold than the allowed limit, you must declare it and pay customs duty at the airport. Here are the updated duty rates:
For jewellery, the duty is 6% (earlier it was 15% but was reduced in the Union Budget 2024).
For gold coins or biscuits, the duty is 12.5%, plus an additional 1.25% Social Welfare Surcharge.
If you don’t declare extra gold and try to smuggle it in, it can lead to confiscation and legal action.
Where Does Most Smuggled Gold Come From?
According to customs officials, most of the smuggled gold in India comes from the United Arab Emirates (UAE). After UAE, the second-largest source of smuggled gold is Myanmar, followed by some African countries.
Interestingly, only about 10% of smuggled gold is caught. The states where gold smuggling is most common include:
Kerala
Maharashtra
Tamil Nadu
About 60% of smuggling cases are reported in these three states.
How Much Cash Can You Bring from Abroad?
There’s no limit on how much foreign cash you can bring into India, but if you bring a large amount, you must declare it.
If a traveler brings in more than $5,000 in cash (about ₹4.3 lakhs), it must be declared.
If the amount is $10,000 or more, including traveler’s cheques, then a declaration is mandatory.
Indian currency of only up to ₹25,000 is allowed from abroad.
How to Declare Cash or Gold at the Airport?
To declare gold or cash at the airport, fill out the Customs Declaration Form (CDF). You may also need to show documents that prove the source of the money or gold. If everything is found correct, your items will be cleared after you pay the required duty.
What Is the Punishment for Breaking the Rules?
If a passenger gives false information, or does not declare gold or cash above the allowed limit:
The gold or cash can be confiscated.
A heavy fine can be imposed.
The person may also face legal action under Indian laws.
According to Section 135 of the Customs Act, if you smuggle gold or cash:
You can face jail for up to 6 years.
You may have to pay a large fine.
The smuggled gold or cash will be seized.
Under the Foreign Exchange Management Act (FEMA), you may also be:
Jailed for up to 1 year.
Fined.
And have your items confiscated permanently.
What Happens to the Confiscated Gold?
Once gold is confiscated:
The Customs Department sends a notice to the person and asks questions about the gold.
If the person gives the correct answers and proof, the gold may be returned.
If not, the gold is sealed and sent to the Reserve Bank of India (RBI).
The RBI purifies the gold to 999.5 purity and sends it back to Customs.
Finally, the Customs Department auctions the gold.
Final Thoughts
If you’re planning an international trip, always check the latest customs rules before you travel. It’s better to declare honestly and pay the required duty than to get caught and face serious trouble. Follow the rules, and you can bring gold and cash safely and legally into India.