Tuesday, March 31, 2015

More Duty Free Gold Jewelry for Non Residents Indians

NRIS or Indian expats can now take more gold from Saudi Arabia in to their country and that too without paying any custom duty! Yes this is amazing and very beneficial for them. Who doesn’t love gold, especially women, particularly when one is in Saudi Arabia. Everyone wishes to take gold from the Kingdom back to their homeland for purpose of investment or for the family as a present. This is one of the gold rich countries where value of Gold is worth. This is good news for all those Indians now.

Previously from ages since 1967 limit for zero duty by the India’s Customs and Central Excise Rules in the budget was INR 10,000 for men and INR 20,000 for women, which was on gold ornaments. Above this limit they were supposed to pay custom duty. The custom duty applied was 2% of the value of the ornaments. At that time the price of gold was INR 40 per gram estimating to SR 2.76. On this base NRIs were supposed to pay custom duty even on a 5 gram gold ring when bringing from other country. India’s Finance Minister P. Chidambaram now declared in New Delhi, the new budget, in which he sets new limits for the duty to be applied on gold ornaments.

Indians can now take home gold up to INR 50,000 by men (17grams) and INR 100,000 by women (35 grams). In Saudi currency it costs up to SR 3,458 for men and SR 6,917 for females. These days the gold rates are almost INR 3,000 per gram Indian expatriates in the Kingdom have said to complain about the custom officer in India who harass them and take away their gold jewelry. This is found to be more prevalent at airports in southern states. India is the world’s largest gold consumer importing in 2012 an estimated 750 tons of gold and additional 200 tons imported through unofficial channels.

Because of this harassment faced by the Indian expats Chidambaram, in his budget speech, declared his reason for raising the duty free limit on gold from INR 10,000 and INR 20,000 to INR 50,000 for males and INR 100,000 for females respectively. Albin Joseph who is a senior Indian banker residing in Riyadh, welcomed this decision of the Indian Finance Ministry.  The Indian government discourages its people to invest in Gold and look into other aspects of financial investments. Chidambaram in this regard proposed an investing strategy as well.

Schemes like the Rajeev Gandhi Equity Savings, deduction in interest for first time loan takers for home or business from bank, and allocation of more funds to NRIs was introduced for benefit of people.

In the Indian Fraternity Forum in Jeddah, a person named E.M. Abdullah said that the Indian government should have addressed and emphasized on the tax implications for NRIs. Radha Krishna in Dammam who is an Indian entrepreneur revealed that the budget offered nothing for the NRIs.
Source: Gulf News

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