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NRI=New Tax on Gold (To bring India)
July 12 2012 , 03:08 PM   #1
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NRI=New Tax on Gold (To bring India)

Customs duty on gold stumps Indian expats

Staff Reporter / 10 July 2012 (Khaleej Times)


As hundreds of thousands of non-resident Indians (NRIS) go home from the Gulf countries these days for the summer vacation, several of them are getting stumped at the airports. They are being asked to declare the gold in their possession at the Indian airports and to pay duty on the “excess quantity”.
Many of them are still not aware that the Indian government has reintroduced a rule passed in late 1960s that states that NRIs could carry only gold or jewellery worth Rs10,000 for men and Rs20,000 for women. Apparently, the customs department has displayed notices announcing this at all international airports. However, several NRIs carry gold in excess of the allowed amount.
Some of the Indian associations have already expressed concerns over the issue and demanded immediate abolition of the rule. They have demanded that the Indian government should levy the customs duty based on the weight of gold instead of the value of gold as rate of gold will keep changing. A UAE-based Indian group has also sought the intervention of Indian Prime Minister Manmohan Singh in revoking the rule and setting new regulations.
Chairman of the Sharjah-based Pravasi Bandhu Welfare Trust K. V. Shamsudheen, who submitted a representation to the Prime Minister’s office, said as per the current market value of gold, a man could only carry three grams and a woman six grams of gold.
“Under the present circumstances, a passenger may have to pay tax for even a wedding ring or a mangalsutra since their weight would exceed the permissible limit,” he pointed out.
“The law being implemented now is more than 40 years old… That time, the gold price was Rs40 for a gram. So, those days a male passenger could take 250 grams and a lady passenger 500 grams of gold without paying tax.”
He said the Indian finance ministry officials, during their visit to the GCC countries, had said that India had imported a record quantity of gold for domestic consumption which has led to the reintroduction of this duty.
“When an NRI takes gold to the country, the government is getting sufficient gold without the loss of foreign currency paid for its import. Instead of encouraging NRIs to take gold to the country, the reintroduction of half-a-century-old law will be to harass the NRIs,” Shamsudheen said in the representation sent on Thursday.
“We request the prime minister to intervene in this issue and permit NRIs to take at least 100gm of gold by a male passenger and 200gm by a female passenger to India without paying tax, as these quantities are less than what was permitted when the law was introduced in the 1960s ,” he added.
“It is a shame that our government is sticking to a 1967 rule related to gold when the gold’s rate has skyrocketed in recent years,” said Shilin Kumar, a Dubai resident whose family had to keep 271 grams of gold at the Kochi International Airport when they landed there on June 30.
He said the expatriates from Kerala, particularly those travelling to Kochi, were facing more difficulties. “It is habitual for passengers to Kerala, especially women, to wear a lot of gold jewellery. Customs officials in the Kochi airport are taking advantage of this age-old rule to harass people by interrogating them in a very rude manner,” said Kumar who runs a cargo company in Dubai.
sajila@khaleejtimes.com
July 13 2012 , 12:35 AM   #2
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at last they are doing something to remove this stupid custom duty ,
u can carry 2 ltrs of alcohol which may cost 30000 rps , but u cannot carry gold more than 10000 rps , it happens only in india ..
instead of encouraging , they are discouraging the import in a way ,

but evryone knows how to carry old while passing customs ..

i myself has seen custom officer taking 30-50 $ for passing any costly watches , perfumes and so on ...
sir , u can use green belt now ..
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July 14 2012 , 12:15 PM   #3
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Gents,
As I told earlier in my Post.
NRI === Non Reliable Indian
NRI === Not Required in India.
July 14 2012 , 12:39 PM   #4
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Quote:
Originally Posted by planner
Gents,
As I told earlier in my Post.
NRI === Non Reliable Indian
NRI === Not Required in India.
Nri's are very much required and very much reliable, and they are our brothers and sisters. Regarding gold, gold has become the second biggest import in India after oil, and this causes a considerable drain on our forex reserves. Import duty is very much justified.

From the last ten years Indians are investing only in real estate and gold, and both are non productive investments
July 14 2012 , 05:45 PM   #5
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Hi,

A quick question for Tax gurus - Do we need to pay tax on accrued interest even if the FD is still to mature and I have received no Interest at all?

Example: An FD from Oct 2011 to Oct 2012 will pay interest at maturity. Do we still have to pay tax on 31st March 2012 even though there is no interest received at all?
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July 15 2012 , 10:25 PM   #6
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I assume this question is for a resident Indian?

Then the answer is Yes, TDS will be deducted quarterly by the bank unless you provide them an declaration in form G/H

Quote:
Originally Posted by matrix_55
Hi,

A quick question for Tax gurus - Do we need to pay tax on accrued interest even if the FD is still to mature and I have received no Interest at all?

Example: An FD from Oct 2011 to Oct 2012 will pay interest at maturity. Do we still have to pay tax on 31st March 2012 even though there is no interest received at all?
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July 16 2012 , 03:52 AM   #7
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Your location is showing "Middle-East".. so why dont you limit it yourself than generalizing it to all Indians

Non Reliable I
Not Required I


Quote:
Originally Posted by planner
Gents,
As I told earlier in my Post.
NRI === Non Reliable Indian
NRI === Not Required in India.
planner likes this.
November 6 2012 , 03:31 PM   #8
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Bhai Log,

Doller rate -?????????????????
Should we start sending?
November 6 2012 , 03:47 PM   #9
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Quote:
Originally Posted by matrix_55
Hi,

A quick question for Tax gurus - Do we need to pay tax on accrued interest even if the FD is still to mature and I have received no Interest at all?

Example: An FD from Oct 2011 to Oct 2012 will pay interest at maturity. Do we still have to pay tax on 31st March 2012 even though there is no interest received at all?
Weather or not TDS is deducted, but there is a tax liability on the interest income, even the interest will be applied to account on maturity.
On the other hand even if you buy KVP(Kisan Vikas Patra) or NSC(National Saving certificate) which get's mature in 8 years and 6 years respectivly, you are still liable to add the interest of these income of FD's each year to pay the tax on interest earned later/ accured.
December 17 2012 , 10:35 AM   #10
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Guys.....do u have any updates on the current status of Old tax rule on carrying Gold at customs, last I heard that many groups of expatriates(especially Keralites in Middleeast) had submitted their signatures to their respective embassy.
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