A total of 39 tonnes of gold was sold at this year’s Danteras festival. Imagine 39 tonnes in a matter of days. As per IBJA, the sale of gold recorded a 30% rise Year on Year despite inflationary fears.
What is special about gold
One of the precious metals that are extracted is gold, which ranks as the world’s fifth most valuable commodity. It is widely used in India to make Gold ornaments and jewelry. We the Indians believe that wearing Gold is a matter of pride and status in society.
No matter what economic uncertainty arises, gold can withstand it. Even when the pandemic broke out, Gold fell negligible compared to the stock markets and real estate. Additionally, gold can be used as an investment hedge to balance a portfolio.
But unlike in Dubai, Gold in India is a little bit costlier. Due to the various taxes, Indian people will have to pay more money than the same that is available in Dubai.
So, most people in India think that instead of buying gold in India, we can actually tour around Dubai and bring back the same gold which will be paying in India.
That’s the reason most people choose to buy gold from Dubai.
Why Gold in Dubai is cheaper than in India?
If we look at the price of Gold in Dubai
The 24carat gold price in Dubai is 47,016
But where India
It is 53,935
So, we can clearly observe that the price variation is almost 5 thousand i.e 5%
The main reasons are
The reason behind this variation is
In Dubai, there is no tax applicable on Gold. In fact, Gold is free from tax.
visitors will have to pay 5% VAT on purchases. But the VAT taken will be given back once they reach to the airport and claim that.
In India, on the purchase of GOLD, 3% GST must be paid. Additionally, 8% GST will be charged as making charges.
As TAX increases, the price of GOLD will also rise followingly.
But carrying GOLD from Dubai to India will have some limitations accordingly. Carrying more than the limit will get punished and made to pay fines.
| Male | 20 Grams or not costing more than 50,000 rupees |
| Woman | 40 Grams or not costing more than 1 lakh |
Let us look at those
How much can an Indian carry in gold?
A male passenger can carry 20 Grams of GOLD not costing more the 50,000 rupees
Example –
If Raju is a person who wants to bring gold from Dubai to India. Then he can carry 20 grams or below 50,000 rupees of Gold. as we have seen in the above example, the cost of 10 grams of gold in Dubai is 47,000. So, Raju can carry 10-11 grams.
A woman can carry 40 grams of gold not casting more than lakh rupees.
These conditions are applicable only when you hold an Indian passport and stayed outside of India for more than 6 months.
What if you want to carry more gold?
For people who stayed outside of India and want to carry excess limit then they should pay 12.5% + 1.25% (Social welfare charge) on the total gold carried.
In the remaining case, it is 38.5% of the total gold carried.
39 tonnes of gold for sold in 2022
There will be a 5% VAT charged on gold purchases. As soon as they reach the airport, the VAT taken will be refunded.
For males, it is 20 Grams or not costing more than 50,000 rupees
For females, it is 40 Grams or not cost more than 1 lakh
However, they must reside out of India for more than 6 months.
For people who stayed outside of India and want to carry excess limit then they should pay 12.5% + 1.25% (Social welfare charge) on the total gold carried.