Customs Duty on Gold in India 2025: Calculation Guide & Latest Rules

In India, gold is traded in many forms, including physically and digitally. Indians consume gold as jewellery, coins, bars, and investment assets. 

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However, the government carefully regulates all this gold trading through tariffs. Customs duty is a type of tax that is applicable on goods imported from different countries. 

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Similarly, when gold is imported from other countries to India, it is subject to customs duty. There’s also a limitation on the amount of gold individuals can carry from one country to another. 

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What is customs duty on gold in India?

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An individual may bring any type of gold jewellery, coins, or bars to India from abroad. However, these gold commodities need to be declared at the time of arrival at the customs kiosks. 

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The customs officer then calculates the applicable customs duty on the amount of gold which the individual will have to pay. 

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Furthermore, not all gold is subject to customs duty.  If gold is imported under a certain limit, it is duty-free. 

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Duty Free Gold Limit

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The customs authority has prescribed a limit on duty-free gold imports for male and female travellers.

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Indian Customs Gold Allowance for Male Travellers

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• Male travellers are allowed to bring 20 grammes, or ₹50,000, of duty-free gold overseas.
• A 3% customs duty is applicable on gold quantities ranging from 20 to 50 grams. 
• 6% customs duty is applicable on gold quantities ranging from 50 to 100 grams.
• A 10% customs duty is applicable on gold quantities above 100 grams.

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Indian Customs Gold Allowance for Female Travellers

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• Female travellers can carry 40 gms or ₹1 lakh worth of duty-free gold.
• A 3% customs duty is applicable on gold quantities between 40 and 100 grams. 
• A 6% customs duty is levied on gold quantities between 100 and 200 grams.
• Imported gold above 200 grams is subject to a 10% customs duty. 

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Children under the age of 15 years are subjected to the same Indian customs rules as for female travellers. However, they are required to carry the paperwork as proof of purchase.

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Customs Duty on Different Types of Gold

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Here’s a breakdown of India's customs gold limit and duty tariffs 

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• No customs duty on gold bars less than 20 grams. 
• Gold bars above 20 grams are subject to a 3% customs duty. 
• 10% custom charges apply on gold bars of 1kg. 
• 100 grams gold coin is also subject to a 10% customs duty. 
• Gold coins between 20 and 100 grams are also subject to a 10% customs duty.
• Gold coins under 20 grams are free from customs duty. 

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How to calculate customs duty on gold in India?

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Customs duty on gold in India is calculated as per section 3(i) of Customs Valuation (Determination of Value of Imported Commodities) Rules, 2007. The customs duty is calculated based on the following factors: 

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

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To validate their gold item, the individual is required to carry all invoices, bills, and proof of purchase. If an individual fails to pay the customs duty for their imported gold item, then that item is subject to confiscation under Section 111 of the Customs Duty Act 1962. 

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To determine the exact amount of customs duty, you need to calculate the total value of the gold based on the prevailing market rates. Using a gold rate calculator you can get the latest gold prices and accurately assess the duty payable.

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Every year, the customs duty is revised during the Union Budget announcement. This year, Nirmala Sitharaman revised the customs duty on gold and other jewellery items.

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Frequently Asked Questions

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1. How much customs duty applies to gold in India?

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Currently, a 6% customs duty is applicable to gold coins, bars, and jewellery items in India.

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2. How much duty-free gold is allowed in Indian customs?

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Men are allowed to carry 20 grams of duty-free gold in India. On the other hand, women can carry 40 grams of duty-free gold in India.

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3. What type of gold is allowed under Indian customs?

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Individuals are allowed to carry gold bars, gold coins, and gold jewellery under a certain limit duty-free. If their gold items surpass the duty-free limit, then that item is subject to customs duty.