Procedures for buying and importing gold from abroad by an Indian are governed by the rules and regulations of the Customs Act, 1962.
The Act empowers the Central Government to regulate the import and export of commodities including gold to protect the economy and the interests of the nation.
Section 11 of the Customs Act provides that any goods imported into India shall be subject to applicable duties and other restrictions.
The Central Government, under the authority conferred by this section, has issued various notifications and regulations regarding the import of gold, including restrictions on individual imports.
Section 11 Customs Act 1962 Explanation.
Section 11 Customs Act-Power to prohibit import or export of goods.
(1) If for any purpose the Central Government wishes to impose a prohibition as mentioned in sub-section (2), it may, by notification in the Official Gazette, impose absolute prohibition on the conditions specified in the provisions of the said Act.
(2) The purposes mentioned in sub-section (1) are as follows:-
(a) maintaining the security of India.
(b) maintaining public order and standards of morality or decency.
(c) anti-trafficking.
(d) preventing shortage of goods of any description.
(e) preservation of foreign exchange and preservation or balance of payments.
(f) prevention of damage to the economy of the country caused by uncontrolled import or export of gold or silver.
(g) prevention of surplus of agricultural production or fishery production.
(h) maintaining standards for the classification, grading or marketing of goods in international trade.
(i) establishment of any industry.
(j) preventing serious injury to the domestic production of goods of any description.
(k) protection of human, animal or plant life or health.
(l) preservation of national treasures of artistic, historical or archaeological value.
(m) conservation of exhaustible natural resources.
(n) protection of patents, trademarks and copyrights.
(o) prevention of deceptive practices.
(p) carrying on foreign trade wholly or partly by the State, or by a corporation owned or controlled by the State, or by non-residents of India.
(q) to carry out obligations under the Charter of the United Nations to maintain international peace and security.
(R) enforce any agreement, treaties or convention with any country.
(S) compliance of imported goods with any laws applicable to similar goods manufactured or manufactured in India.
(t) prevent the circulation of documents containing any matter likely to prejudice friendly relations with any foreign nation or to denigrate national honor.
(u) prevent violation of any law for the time being in force.
And
(v) any other purpose conducive to the interests of the general public.
Government can ban export and import if the above reasons arise.
How much gold can be brought from abroad?
According to recent regulations, Indian residents are allowed to bring gold into India through personal baggage only up to certain limits. These limits vary depending on whether the individual is male or female, the individual’s age and length of stay abroad.
For example : male travelers staying abroad for more than 6 months are allowed to bring up to 20 grams of gold in the form of jewelery duty-free. Meanwhile, female travelers staying abroad for more than 6 months are allowed to bring up to 40 grams of gold. Tax-free allowance is reduced for persons staying abroad for less than 6 months.
However, it should be noted that these limits are subject to change. Therefore, before importing gold from abroad, it is advisable to check the latest regulations and guidelines issued by the central government or consult a customs lawyer.
It is also necessary to comply with notification or documentation requirements when bringing gold into India. Failure to comply with customs regulations will result in penalties including confiscation of gold and imposition of fines.
It may be noted that these regulations relate to import of gold for personal use. Importing gold for trade or business purposes requires obtaining necessary licenses and complying with additional regulations, including those issued by the Reserve Bank of India (RBI) for foreign exchange controls.
In conclusion, Indian residents can import gold from abroad within the prescribed limits, it is important to keep up-to-date with the relevant rules and regulations issued by the Central Government. It is recommended to consult a customs attorney or seek advice from relevant authorities to ensure compliance with applicable laws.