Customs Duty on Gold when Returning to India

A member from our BacktoIndia WhatsApp group recently shared what happened to her at Mumbai airport.

She was wearing her everyday gold chain and bangles. Nothing fancy. Stuff she’d been wearing for years.

A customs officer stopped her. Asked for purchase receipts. Calculated the value at current market rates. And then asked her to pay Rs 80,000 in duty.

She was shocked. She’d been living in the US for 8 years. The jewellery was bought in India. But she didn’t have receipts, and the officer wasn’t budging.

Stories like this come up almost every week in our community.

The good news?

Budget 2026 has finally brought some much-needed clarity to these rules. The government has removed the outdated value caps on gold jewellery, making things simpler for NRIs.

But you still need to know exactly what’s allowed, what attracts duty, and how to avoid trouble at the airport.

That’s what this guide is all about.

What Changed in Budget 2026?

Finance Minister Nirmala Sitharaman announced the Customs Baggage Rules, 2026 on February 1, 2026. These replace the decade-old 2016 rules.

Here’s what’s new and why it matters for NRIs:

1. Value caps on gold jewellery have been removed

Earlier, men could carry gold jewellery worth up to Rs 50,000 and women up to Rs 1,00,000 duty-free. The problem? Gold prices have shot up massively since 2016 when these limits were set. Back then, gold was around Rs 2,500 per gram. Today, it’s over Rs 8,000.

So even a simple 20-gram chain would breach the old value cap.

Now, the rule is purely weight-based. No value cap at all.

2. General duty-free allowance increased

The overall duty-free limit for goods (other than gold) has gone up from Rs 50,000 to Rs 75,000 for Indian residents and NRIs arriving by air or sea.

3. Digital declarations introduced

The new rules support advance digital declarations through the ATITHI app, making customs clearance faster.

These changes took effect from February 2, 2026.

How Much Gold Can You Carry Duty-Free?

This is the most common question I get. Here’s the simple answer.

If you’ve been living abroad for more than one year, you can bring gold jewellery duty-free within these limits:

Passenger	Weight Limit	Value Cap
Male	Up to 20 grams	No cap (post Budget 2026)
Female	Up to 40 grams	No cap (post Budget 2026)

A few important conditions:

• You must be an Indian passport holder or a Person of Indian Origin (PIO/OCI)
• You must have stayed abroad continuously for at least one year
• Short visits to India totalling less than 30 days during that year are usually ignored
• The gold must be in the form of jewellery (items of personal adornment)
• It must be for personal use, not for resale

If you’re returning to India from the USA after several years, this applies to you. Same for those returning from the UAE, UK, or Canada.

What Counts as “Jewellery”?

This matters more than most people think.

Under the 2026 rules, jewellery means articles of adornment ordinarily worn by a person, made of gold, silver, platinum, or other precious metals – whether studded with stones or not.

So these count as jewellery:

• Chains and necklaces
• Bangles and bracelets
• Earrings
• Rings
• Pendants and lockets

These do NOT count as jewellery:

• Gold bars
• Gold coins
• Gold biscuits
• Loose gold in any form

Gold bars and coins attract customs duty from the very first gram, regardless of quantity. There is no duty-free allowance for them.

What If You’re Carrying Gold Beyond the Duty-Free Limit?

If you’re carrying more gold than the duty-free allowance (or carrying gold bars/coins), customs duty applies.

Here’s how the duty structure works:

Your Stay Abroad	Duty-Free Jewellery Allowance	Duty on Excess Gold (up to 1 kg)
More than 1 year	20g (male) / 40g (female)	6% concessional rate
6 months to 1 year	None	6% concessional rate
Less than 6 months	None	36% standard rate

The 6% concessional rate includes 5% Basic Customs Duty + 1% Agriculture Infrastructure and Development Cess (AIDC).

The 36% standard rate includes 35% Basic Customs Duty + 1% AIDC. This applies if you’ve been abroad for less than 6 months or if you’re a foreign national.

The difference between 6% and 36% is massive. For NRIs who have been abroad for 6+ months, this concessional rate is a significant benefit.

The maximum gold you can carry as a passenger is 1 kilogram per person (including jewellery).

If your gold exceeds 1 kg, it falls under commercial import rules and that’s a completely different process.

A Quick Example to Show How This Works

Let’s say you’re a woman who has lived in the US for 5 years. You’re moving back and carrying:

• Personal gold jewellery: 60 grams
• Two gold coins: 50 grams total

Here’s how the duty calculation would look:

Jewellery (60 grams):

• First 40 grams: Duty-free (your allowance as a female passenger)
• Remaining 20 grams: Customs duty at 6%

Gold coins (50 grams):

• Full 50 grams: Customs duty at 6% (no duty-free allowance for coins)

So you’d pay 6% duty on 70 grams worth of gold (20g excess jewellery + 50g coins), calculated at the prevailing tariff value set by customs.

What About Gold You Already Owned in India?

This comes up constantly in our community. You bought jewellery in India years ago, took it abroad with you, and now you’re bringing it back.

In theory, re-importing your own gold should not attract duty. But proving it at the airport is the tricky part.

Here’s what helps:

Get an Export Certificate before leaving India. When you originally left India with gold jewellery, you could have declared it at customs and obtained an export certificate. This certificate lets you bring the same jewellery back without paying duty again.

Most NRIs don’t do this (I didn’t either, honestly). But if you’re planning your return to India, and you’ve been travelling between countries with gold jewellery, this is worth knowing for future trips.

If you don’t have an export certificate, carry whatever proof you can:

• Old purchase receipts or invoices from Indian jewellers
• Family photos showing you wearing the jewellery
• Insurance documents listing the jewellery
• Any valuation certificates

It won’t guarantee a smooth passage, but it helps your case.

Step-by-Step: What to Do at the Airport

Here’s the process when you arrive at an Indian airport with gold:

Step 1: Know before you go

Before your flight, calculate exactly how much gold you’re carrying. Weigh everything. Know what falls within duty-free limits and what doesn’t.

Step 2: Fill the customs declaration

You can either fill out the physical Customs Declaration Form (Form I for residents, Form II for non-residents) or use the ATITHI app for advance digital declaration.

Declare all gold honestly. List the type (jewellery/bars/coins), quantity, and weight.

Step 3: Use the Red Channel

If you’re carrying gold that exceeds the duty-free limit or any gold in the form of bars or coins, go through the Red Channel at customs. Don’t try to sneak through the Green Channel. It’s not worth the risk.

Step 4: Show your documents

The customs officer will check:

• Your passport (to verify Indian nationality/origin)
• Visa stamps and entry/exit records (to verify duration of stay abroad)
• Purchase receipts for the gold
• Your customs declaration form

Step 5: Pay the duty

Duty can be paid in:

• Foreign currency (cash)
• Credit or debit card
• Demand draft

Keep the duty receipt safe. You’ll need it if there are ever questions about the gold later.

Buying Gold from Airport Customs Bonded Warehouses

Here’s an option many NRIs don’t know about.

If you qualify for the concessional 6% duty rate (stayed abroad for 6+ months), you can buy gold directly from customs bonded warehouses operated by the State Bank of India (SBI) and MMTC at major Indian airports.

You need to declare your intention to do this at customs upon arrival, pay the 6% duty, and collect the gold from the warehouse.

You can also import the gold within 15 days of your arrival, rather than carrying it on you.

This is a useful option if you want to invest in gold bars or coins but don’t want to physically carry them on the flight.

Common Mistakes NRIs Make with Gold at Customs

From years of hearing stories in our BacktoIndia community, here are mistakes I see again and again:

1. Not declaring gold at all

Some people think if it’s within the duty-free limit, they don’t need to declare it. While technically you can walk through the Green Channel with jewellery within your duty-free limit, it’s always safer to declare – especially if you’re carrying anything close to the limit.

Non-declaration of gold that exceeds limits is treated as smuggling under the Customs Act of 1962. This can lead to confiscation, fines (100-500% penalty), and even prosecution.

2. Undervaluing the gold

Customs officers have access to daily gold prices. They know exactly what gold is worth. Trying to declare a lower value won’t work and can get you into serious trouble.

3. Carrying gold in checked luggage

Always carry gold in your hand luggage. It’s safer from theft, easier to declare, and you can show it to customs officers immediately if asked.

4. Confusing jewellery with bars/coins

Remember – duty-free allowance is only for jewellery. If you’re carrying even a small gold coin, duty applies on it from gram one.

5. Not carrying purchase receipts

Always carry receipts, purity certificates, and any documentation for gold you’re bringing in. Even for gold within your duty-free limit, having receipts makes the process smoother.

What About Gold from Dubai?

I get this question a lot, especially from NRIs in the UAE.

Dubai is famous for its gold souks and competitive prices. Many NRIs buy gold there and bring it to India.

The rules are exactly the same regardless of which country you’re flying from – USA, UAE, UK, Canada, or anywhere else. The duty rates, limits, and exemptions don’t change based on your departure country.

What does matter is:

• How long you’ve been abroad (for the concessional rate)
• Whether the gold is jewellery or bars/coins
• Whether you declare it properly

If you’re an NRI in the UAE planning your return, also check out our guide on UAE to India money transfers and the Bank of Baroda UAE guide for managing your finances during the move.

Tax Implications After You Bring Gold to India

Bringing gold through customs is one part of the story. But there are tax considerations once the gold is in India too.

GST on gold purchases: If you buy gold in India after returning, you’ll pay 3% GST on the value and 5% GST on making charges for jewellery.

Wealth and income tax: Gold held in India needs to be considered when you file your income tax returns. While there’s no wealth tax anymore, if you sell gold in India, capital gains tax rules apply.

For US NRIs specifically: If you’re still a US tax resident or Green Card holder, you may need to report your gold holdings as part of your worldwide assets. Check our guide on FBAR reporting and disclosing foreign assets for more on this.

DTAA benefits: India has Double Taxation Avoidance Agreements with several countries. If you’re dealing with tax obligations in two countries, understanding DTAA provisions can help you avoid paying tax twice.

Quick Checklist Before Your Flight

Use this checklist before you board your flight to India:

• [ ] Weigh all gold you’re carrying (jewellery, coins, bars – separately)
• [ ] Verify you meet the eligibility criteria (Indian passport/PIO, 1+ year abroad for duty-free)
• [ ] Gather purchase receipts and purity certificates
• [ ] Download the ATITHI app and fill your customs declaration in advance
• [ ] Calculate estimated duty if you’re above the duty-free limit
• [ ] Arrange foreign currency or a working credit/debit card for duty payment
• [ ] Pack gold in hand luggage, not checked bags
• [ ] Carry photos or insurance documents as proof for older jewellery
• [ ] Keep family jewellery receipts handy if travelling with spouse and children

Frequently Asked Questions

Can children carry gold duty-free?

Yes. Children who have resided abroad for over one year also qualify for the same duty-free jewellery allowance (20g for boys, 40g for girls).

Do I need to declare gold within the duty-free limit?

Technically, you can walk through the Green Channel if your jewellery is within the allowable limit. But it’s always safer to declare. It protects you in case of any questions.

Can OCI card holders bring gold duty-free?

Yes. OCI holders and Persons of Indian Origin qualify for the same duty-free jewellery allowance as Indian passport holders, provided they’ve stayed abroad for more than one year.

What if I’m only visiting India, not returning permanently?

The rules are the same whether you’re visiting or returning for good. The duty-free allowance applies to any eligible Indian-origin passenger arriving from abroad after staying overseas for 1+ year.

Can I bring gold jewellery as a gift for family?

The duty-free allowance is for personal use only. However, once you’ve legally brought the gold into India and paid any applicable duty, what you do with it is your decision.

What happens if customs confiscates my gold?

If undeclared gold is found, it can be seized under Section 111 of the Customs Act, 1962. You may face penalties ranging from 100% to 500% of the duty amount. In some cases, criminal prosecution is possible.

Can I buy gold at the airport duty-free shop?

Indian airport duty-free shops do sell gold items, but they are not “duty-free” in the customs sense. You’ll still need to declare the gold and follow the same rules when passing through Indian customs.

Is there any duty on silver?

Silver has no duty-free allowance in any form. But eligible passengers (6+ months abroad) can bring up to 10 kg of silver at the same concessional 6% duty rate.

What currency should I pay duty in?

Always pay in foreign currency (USD, AED, GBP, etc.) or by international credit/debit card. If you pay in Indian Rupees, the standard 36% rate may apply instead of the concessional 6% rate. This is a crucial detail many people miss.

Key Takeaways

The Budget 2026 changes have made things clearer and more practical for NRIs carrying gold to India.

The main things to remember:

Gold jewellery limits are now weight-based only – no value caps. Men get 20 grams duty-free, women get 40 grams. This applies if you’ve lived abroad for 1+ year.

Gold bars and coins always attract duty. No exemptions, no duty-free allowance. The concessional rate is 6% if you’ve been abroad for 6+ months.

Always declare. The 6% duty is reasonable. The risk of non-declaration (confiscation, heavy fines, prosecution) is simply not worth it.

Carry your documents. Receipts, certificates, passport with visa stamps – these make everything smoother.

The maximum you can carry is 1 kg per person. Beyond that, it’s treated as a commercial import.

Need More Help?

Planning your move back to India involves a lot more than gold. From NRI bank accounts to investment options to finding the right city – there’s a lot to figure out.

If you’re planning your move back, join our WhatsApp community at https://backtoindia.com/groups – 20,000+ NRIs helping each other with real, lived experience. It’s free and volunteer-run.

Disclaimer: This article is for informational purposes only. Customs rules and duty rates are subject to change. Always verify the latest rules on the CBIC website or with your customs office before travel. For specific tax advice, consult a qualified tax professional.

Sources: Central Board of Indirect Taxes and Customs (CBIC), Customs Baggage Rules 2026 (Notification dated February 1, 2026), Mumbai Customs Zone III guidelines, and community experiences from BacktoIndia.com members.