Customs rules in India

How much gold, cash are you allowed to carry on domestic, foreign flights

Customs rules in India:

Ranya Rao

Kannada actress Ranya Rao was caught smuggling 14.8kg of gold at Bengaluru Airport. The DRI intercepted her before she could clear security, making it one of the biggest gold seizures in recent times.

smuggled gold

Rao concealed 14 gold bars by taping them to her thighs with bandages to evade detection. Despite this attempt, customs officials intercepted her before she could exit, uncovering the smuggled gold.

gold smuggling operation

Searches at locations linked to Rao led to the recovery of gold jewellery worth ₹2.06 crore and ₹2.67 crore in cash. This discovery indicated her involvement in a larger gold smuggling operation.

The Customs Act of 1962

The Customs Act of 1962 regulates gold imports, setting limits, duties, and penalties for violations. These rules prevent illegal smuggling and ensure that proper taxes are collected on imported gold.

Indian passengers

Indian passengers can bring up to 1kg of gold. Duty-free limits: men – 20g (₹50,000), women – 40g (₹1 lakh). NRIs returning after six months abroad can import 10kg gold but must pay customs duties.

The Union Budget 2024

The Union Budget 2024 reduced gold import duty from 15% to 6%. Gold bars and jewellery still attract a 12.5% duty plus a 1.25% surcharge. Non-concessional gold imports are subject to 38.5% duty.

How much gold

At airport customs, the Green Channel is for passengers without dutiable items, while the Red Channel is for those declaring items. Undeclared gold in the Green Channel results in legal action.

Section 111 of the Customs Act

Gold must be declared upon arrival using a customs form. Its weight, value, and purity are verified. Non-compliance with regulations can lead to confiscation and penalties under Section 111 of the Customs Act.

Forex rules

Forex rules require declaring cash above $5,000 or total forex exceeding $10,000. Indian residents returning from abroad can bring ₹25,000 in cash. Violations can result in fines and confiscation.

gold smuggling

Smuggling or false declarations under the Customs Act 1962 can lead to confiscation, heavy fines, and legal action. The law enforces strict penalties to prevent gold smuggling and financial crimes.

legal taxation

Customs regulations control gold flow, prevent tax evasion, and restrict illegal transactions. Smuggling gold impacts the economy by enabling black-market trade and avoiding legal taxation.

Ranya Rao’s case

Ranya Rao’s case highlights the consequences of evading customs laws. Smuggling gold leads to penalties, confiscation, and legal action. Travellers must follow import regulations to avoid serious trouble.

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