2. Importing Gold Versus Buying In India

A NRI is permitted to import gold bars, coins and ornaments up to 1 kg to India, provided thefact that he should have stayed abroad for a period of six months or more. The import of gold is subjected to duty tax. An NRI should declare the gold on arrival to India and pay duty which is currently is 4 percent of notified value in case of gold bars bearing serial number, weight and manufacturer's name and 10 percent in case of any other kind of gold, including jewellery. The 'notified' value is determined by the Government from time to time.

Does it make sense for NRIs to import gold? Amresh Acharya, Director-Investments, World Gold Council explains, "With hallmarking now available at many leading gold outlets, the purity and quality of gold in India is equivalent to that in other parts of the world. However, based upon the priority of the consumer there are two counts on which this choice can be made. Traditional gold jewellery in India is inspired by the country's rich heritage and craftsmanship. Consumers considering purchase of jewellery, especially traditional designs for socio- cultural reasons, will find unparalleled designs and themes in India. In terms of price, the import duty coupled with other local taxes has made gold in India more expensive compared to some other countries.