New baggage rules for 2026, significant changes in duty-free limits and bringing gold

For overseas Indians returning home for vacation, the new budget presented by the central government has brought significant changes in the duty-free limit and the import of gold as per the new baggage rules of 2026.

Under the newly announced Baggage Rules 2026 in India (effective from February 2, 2026), Indian residents and persons of Indian origin living abroad for more than two years can bring used personal and household goods worth up to Rs 7.5 lakh and get tax exemptions as per the terms of Transfer of Residence (ToR).

Key details of the updated 2026 rules on this provision:

• Eligibility: The individual must have resided abroad for at least 2 years immediately preceding the date of arrival in India.
• Total stay in India: The total number of visits to India in the previous two years should not exceed 180 days (or 6 months).
• Exemption Usage: The traveler must not have availed this special Change of Residence (ToR) exemption in the last three years.
• Scope of goods: Duty-free relief applies to used personal and household goods not listed in Appendix I (Prohibited/Highly Restricted Items) of the Baggage Rules.
• New items: The rules provide a single, logical list of duty-free items with an overall value limit, making it easier to bring in various household items.

Other 2026 baggage rule updates:

• General Allowance: The standard duty-free allowance for air passengers has been increased to ₹75,000.
• Jewellery: Duty-free jewellery allowance is now based on weight: 40 grams for women (previously up to a value limit of ₹1 lakh) and 20 grams for others, if they have stayed abroad for more than a year.
• Laptop: Travelers over 18 years of age can import one laptop duty-free.
• Note: These exemptions are for personal effects, not commercial items.

Till now, the value of goods that an ordinary expatriate could bring in without tax (Duty-free allowance) was Rs 50,000. But under the new law, this has been increased to Rs 75,000. This means that more exemption will be given to expensive gifts and household items brought from abroad. This benefit is applicable to foreign tourists and people of Indian origin alike.

In the new budget, expatriate women who have lived abroad for more than a year can bring in up to 40 grams of gold duty-free. Currently, women can only bring in jewellery worth Rs 1 lakh and men can bring in jewellery worth Rs 50,000 duty-free. This limit was set in 2016 based on the then market price (Rs 1 lakh for 40 grams and Rs 50,000 for 20 grams). In India, the price per gram is around Rs 15,000. The limit has been revised keeping this in mind. The previous 'value limit' has been removed and replaced by weight. Men and others can bring in up to 20 grams of gold duty-free. No matter how much the price of gold increases, customs duty will no longer be paid on jewellery within this specified gram. In a situation where gold prices are soaring, even if you bring in a small necklace under the old value limit, customs would have caught you off guard. It is no longer the value of the gold, but the weight that matters. 

The digital age is over, with customs and airports having to stand in long queues to fill out declaration forms. Under the new law, passengers can now submit their declarations in advance through a mobile app or online portal. This will significantly reduce the inspection time at the airport.

Other major concessions include allowing any traveler above the age of 18 to bring a laptop tax-free. There is also a significant increase in the limit of goods that can be brought in by those returning home permanently after completing their work abroad. Those who have been abroad for more than two years can bring goods worth up to Rs 7.5 lakh tax-free.