NRI Buying Gold in India: Rules, Tax and Repatriation Guide
Table of Contents
The two-week December visit home usually includes a trip to the family jeweller, and the questions follow on the flight back: was that purchase within the rules, how will it be taxed, and can the money ever come back out? The short answers for an nri buying gold india journey are reassuring. NRIs can legally buy gold in India across four formats, physical gold, gold ETFs, digital gold and gold mutual funds, under FEMA's framework. What differs sharply by format is the tax treatment, the accounts needed, and the repatriation path for sale proceeds, which runs through the NRO account with its USD 1 million annual window. This guide compares the four formats, sets out the capital gains rules as they stand in 2026, walks the repatriation process step by step, and covers the gold loan option most NRI guides never mention.
Can NRIs Buy Gold in India? What the Rules Say
Yes, and without any purchase ceiling. FEMA places no bar on an NRI buying gold in India with funds from an NRE, NRO or FCNR account, or with money carried in through legal channels. Four formats are open. Physical gold: coins, bars and jewellery from any seller. Gold ETFs: bought on the exchanges through a demat account, with a PIS-linked setup where applicable. Digital gold: legally purchasable, though it is unregulated, a point the securities regulator cautioned investors about in November 2025. Gold mutual funds: open to NRI investment subject to the fund house's acceptance of the investor's country of residence.
One closed door needs stating plainly, because much online material gets it wrong. Sovereign Gold Bonds are not available to NRIs: fresh issuance was discontinued after February 2024 anyway, and the scheme's eligibility rules restrict holding to resident investors, which keeps NRIs out of the secondary market too. The lone carve-out covers bonds bought while resident: the holder who subsequently becomes an NRI may keep them to maturity or premature redemption.
Gold Investment Options for NRIs: A Quick Comparison
|
Format |
Minimum Investment |
Account Needed |
Repatriable? |
Key Restriction |
|
Physical gold |
No minimum |
None; PAN for larger buys |
Sale proceeds via NRO route |
Metal itself needs customs clearance to move |
|
Gold ETFs |
One unit |
NRI demat + trading account |
Per account and tax rules |
Demat setup and paperwork |
|
Digital gold |
Very small amounts |
Platform account |
Sale proceeds via NRO route |
Unregulated product; platform risk |
|
Gold mutual funds |
Fund minimum |
NRE/NRO-linked folio |
Per folio funding route |
Some fund houses restrict certain countries |
Note: The comparison above is indicative and for general information only. Product availability, account requirements and repatriation treatment depend on the platform, fund house, account type and regulations applicable at the time.
For a long-horizon investor, ETFs and funds carry regulated custody and clean exit trails. For family and ceremonial purposes, physical gold remains the format that actually gets worn.
Tax on NRI Gold Investments in India
Three layers matter: capital gains, TDS, and treaty relief.
Capital gains follow the format and the holding period, under the regime the July 2024 Budget introduced, since carried into the Income-tax Act, 2025. One wrinkle trips people up here. Listed gold ETFs reach long-term status at 12 months, but gold mutual funds, being unlisted fund-of-funds, wait the full 24. Same 12.5% rate at the end, different road to it.
|
Asset Type |
Holding Period |
Tax Treatment |
|
Physical gold / digital gold |
Up to 24 months |
STCG at the applicable slab rate |
|
Physical gold / digital gold |
Over 24 months |
LTCG at 12.5% without indexation |
|
Gold ETFs (listed) |
Up to 12 months |
STCG at the applicable slab rate |
|
Gold ETFs (listed) |
Over 12 months |
LTCG at 12.5% without indexation |
|
Gold mutual funds |
Up to 24 months |
STCG at the applicable slab rate |
|
Gold mutual funds |
Over 24 months |
LTCG at 12.5% without indexation |
Note: Tax rates and holding periods shown are illustrative of the position as generally understood in 2026 and may change with law or notification. Individual tax outcomes depend on the taxpayer's facts, acquisition dates and applicable provisions; professional advice may help before acting.
TDS bites harder for NRIs than residents: payers are generally required to deduct tax at source on an NRI's taxable capital gains, so the sale credit often arrives net, with the final position settled at return filing. And the DTAA layer can prevent the same gain being taxed twice; India's treaty with the NRI's country of residence governs the relief, and a tax adviser familiar with both jurisdictions is worth the fee for any sizeable sale.
How NRIs Can Repatriate Gold Sale Proceeds
- Sell the gold and take the proceeds into the NRO account. Sale proceeds of assets in India belong in NRO, not directly in NRE.
- Settle the tax and paper it: pay applicable capital gains tax and obtain the chartered accountant certification, Form 15CB, with Form 15CA filed online.
- Move the funds from NRO to NRE, within the ceiling of USD 1 million (or its INR equivalent) per financial year that governs NRO remittances of this kind.
- Remit abroad from the NRE account, whose balances are freely repatriable.
The metal itself is a different matter from the money. Physical gold cannot simply be carried or shipped out as bullion; customs rules at both ends apply, and only the sale proceeds enjoy the clean NRO route. Selling in India and remitting the money is almost always the practical path.
Can an NRI Use Gold Held in India for a Loan?
The option most guides miss: gold sitting in an Indian locker can work as collateral without being sold. NRIs may pledge gold held in India for a gold loan from Indian lenders, subject to lender policy on documentation and representation; many lenders prefer a resident family member as co-applicant or authorised representative for servicing. The loan proceeds are credited in India, typically to an NRO account, and being borrowings rather than income, they are not directly repatriable. Valuation follows the RBI framework effective 1 April 2026: the net metal is valued at whichever of the two published reference prices, IBJA or a SEBI-recognised exchange, is lower, with the reference rate applied according to the assessed purity of the gold and tiered LTV caps by loan size. For funding a family need, a property expense or a business in India, this route raises money while the gold, and its future price upside, stays in the family. IIFL Finance branches can confirm the documentation applicable to NRI-owned gold, subject to eligibility and prevailing guidelines.
Conclusion
India keeps its gold market open to its diaspora: no purchase caps, four formats, and a lawful, well-marked exit for sale proceeds through the NRO account, the 15CA/15CB certification, and the USD 1 million annual window. The traps are all avoidable ones, buying digital gold without knowing it is unregulated, assuming SGBs are somehow available, or planning to fly bullion out instead of remitting money. Paperwork discipline is the whole game: invoices for every purchase, tax settled before remittance, and treaty relief claimed where it applies. And for the NRI whose gold is meant to stay in India, pledging it for a gold loan with IIFL Finance turns the locker into liquidity without a sale, on terms that depend, as everything here does, on eligibility, verification and the rules prevailing at the time.
Frequently Asked Questions
How much gold can an NRI carry out of India without paying customs duty?
India levies no export duty on personal jewellery worn or carried out, but two practical rules govern the journey. The destination country's customs limits apply on arrival, and they vary widely. And for gold intended to return, obtaining an export certificate from Indian customs at departure documents the pieces so they re-enter India duty-free later. Coming into India is where duty bites, and the framework changed recently. Under the Baggage Rules, 2026, in force from February 2026, the old value caps are gone; the duty-free jewellery allowance is now purely weight-based, up to 40 grams for female passengers and 20 grams for others, available to Indian residents or persons of Indian origin who have lived abroad for more than a year, with excess attracting duty. Gold bars and coins sit outside this allowance entirely and need declaration. Invoices settle most questions at either border.
Do NRIs need a PAN card to buy gold in India?
For meaningful amounts, effectively yes. PAN is required to be quoted on gold purchases crossing ₹2 lakh, and income tax law separately bars paying ₹2 lakh or more in cash for any single transaction. Any route through a demat account, ETFs or mutual funds, requires PAN at account opening. Smaller physical purchases paid digitally can go through without it, but the invoice trail PAN creates is precisely what an NRI needs later, at resale, at repatriation, and if the tax office ever asks about the source. Getting PAN sorted before the India trip removes the friction entirely.
Can NRIs repatriate inherited gold from India?
Not as metal, practically speaking; as money, yes. Physically exporting inherited gold as bullion runs into customs clearance at both ends, so the workable route is selling in India, crediting the proceeds to the NRO account, settling capital gains tax, obtaining Forms 15CA and 15CB, and remitting within the USD 1 million per financial year window. Inheritance itself is not taxed in India, but the eventual sale is, with the original owner's acquisition date and cost carrying over. Keep the will or succession papers with the sale file, both the tax working and the remittance go smoother that way.
Can NRIs take a gold loan against gold held in India?
Yes, subject to lender policy. Gold lying in India can be pledged with Indian lenders, and many prefer a resident family member as co-applicant or authorised representative to handle servicing and release. The loan is valued under the RBI's 2026 framework on the net metal at the benchmark-linked rate, with the reference rate applied according to the assessed purity of the gold, and disbursed in India, typically into an NRO account. Being a borrowing rather than income, the loan amount is not directly repatriable; it suits needs inside India, a renovation, a wedding, a business gap. A call to the lender about documentation before travelling can save a wasted branch visit.
Can NRIs invest in Sovereign Gold Bonds?
No. SGB eligibility was always limited to resident individuals and entities, and that restriction extends to the secondary market, where transfers are permitted only between eligible investors, so an NRI cannot buy listed SGBs either. Fresh issuance has in any case been discontinued since February 2024. The exception works one way only: bonds subscribed while resident can stay with the holder through maturity or early redemption after the move abroad, with proceeds credited in India. NRIs wanting regulated gold exposure can look instead to gold ETFs and gold mutual funds through the proper NRI account routes.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
