(INDIA) — India’s customs regime for arriving passengers changed at midnight on February 2, 2026, when the Baggage Rules, 2026 took effect with higher Duty-free allowances and a lower customs duty rate on many personal imports.
The changes, announced in the Budget 2026 speech by Union Home Minister Nirmala Sitharaman and issued by the Central Board of Indirect Taxes and Customs (CBIC), replace the Baggage Rules, 2016 for most air and sea arrivals.
For travelers, the practical message is simple: many common purchases now fit within higher thresholds, but documentation and travel mode still matter.
For immigrants and visa holders living in the U.S., this is not U.S. income tax law. Still, it can affect trip costs and compliance planning.
It also affects what you carry when you enter India on a green card, H-1B, F-1, or U.S. citizenship.
Overview: New Baggage Rules 2026 and effective date
Under the new Baggage Rules, 2026, India increased duty-free allowances for several passenger categories. It also reduced the customs duty rate on many dutiable personal goods.
The effective time is specific. The rules apply to eligible travelers arriving after midnight on February 2, 2026. CBIC’s issuance also means the 2016 rules are no longer the default for air and sea arrivals.
📅 Deadline Alert: The higher allowances apply only to arrivals after midnight February 2, 2026. Keep boarding passes and receipts to support arrival time and purchase dates.
Before/After: what changed in one view
| Item | Before (Baggage Rules, 2016) | After (Baggage Rules, 2026) | Effective date |
|---|---|---|---|
| Duty-free allowance for Indian residents and tourists of Indian origin (air/sea) | ₹50,000 | ₹75,000 (50% increase) | Feb. 2, 2026 |
| Duty-free allowance for foreign tourists | ₹15,000 | ₹25,000 | Feb. 2, 2026 |
| Customs duty on dutiable personal goods (general rate) | 20% | 10% | Feb. 2, 2026 |
| Laptop/notebook allowance (18+) | More limited under prior practice | One new laptop/notebook duty-free | Feb. 2, 2026 |
| Jewelry allowance (returning residents / tourists of Indian origin living abroad > 1 year) | Prior limits under 2016 rules | 40g (female), 20g (others) | Feb. 2, 2026 |
| Land-border arrivals | Lower limits under prior rules | Old limits continue until CBIC notifies changes | Transition rule |
Duty-free limit for Indian residents and tourists of Indian origin
The most widely used change is the higher duty-free allowance for eligible Indian travelers.
Who qualifies for the ₹75,000 allowance
- Indian residents arriving in India by air or sea
- Tourists of Indian origin arriving in India by air or sea
- Goods must be carried on the person or in bona fide accompanied baggage
The allowance increased to ₹75,000, up from ₹50,000, a 50% jump. Many travelers will feel this immediately with electronics, gifts, and household items.
Example (air arrival): A returning Indian resident buys clothing and a smartwatch abroad totaling ₹72,000. If the goods otherwise qualify as baggage and are accompanied, they should fall within the duty-free allowance.
This higher threshold is also the rule most likely to be quoted as “₹75, 000” in airport conversations. Treat it as a compliance limit, not a general shopping target.
Duty-free limit for foreign tourists
For foreign tourists, India raised the duty-free limit to ₹25,000, up from ₹15,000 under the 2016 rules.
This matters for friends and relatives visiting India from the U.S., including U.S. citizens traveling as tourists. It can also apply to foreign spouses visiting India with an Indian family.
Example: A U.S. tourist arrives with gifts totaling ₹22,000 in accompanied baggage. Under the new rule, those gifts may fit inside the higher ₹25,000 threshold.
Specific allowances: laptop/notebook and jewelry
The Baggage Rules, 2026 also clarify two items that often trigger questions at customs counters.
One new laptop/notebook (age 18+)
Passengers aged 18 or older can import one new laptop or notebook duty-free. This is a bright-line rule many travelers will welcome.
Example: A 22-year-old student flying into India with one new laptop plus clothing can generally treat the laptop as duty-free, separate from other allowances, if conditions are met.
Jewelry for returning residents and tourists of Indian origin (after living abroad > 1 year)
- Up to 40 grams for female passengers
- Up to 20 grams for other passengers
⚠️ Warning: Jewelry and electronics are frequent audit targets. Carry invoices and, where relevant, prior ownership proof. Unsubstantiated values can lead to disputes.
Customs duty reduction on personal goods: 20% to 10%, with exclusions
Beyond allowances, the rules reduce the customs duty rate on many dutiable personal goods imported for personal consumption.
- Old rate: 20%
- New rate: 10%
Important exclusions
- The 10% concession does not apply to Motor vehicles
- The 10% concession does not apply to Alcohol
- The 10% concession does not apply to Tobacco
For many travelers, this rate cut matters when you exceed the duty-free threshold. The out-of-pocket cost on the dutiable portion can be materially lower than before.
Example: If a traveler has dutiable personal goods valued above the applicable allowance, the general duty rate applied to those goods is now 10% instead of 20%, subject to classification and other charges.
Implementation details and practical notes (receipts, arrival mode, and transition rule)
CBIC issued the official Baggage Rules, 2026, and they apply to most arrivals by air or sea after the effective time.
Receipts matter more than ever. Travelers arriving after February 2, 2026 should retain purchase invoices (paper or digital), boarding passes and travel itinerary, and warranty cards or proof of new purchase for electronics.
Land border transition rule
A key transitional point is travel mode. Those transiting by land continue under the older, lower limits until CBIC notifies changes for land borders.
If your trip includes Nepal, Bhutan, Bangladesh, or Pakistan crossings, verify the applicable rule set before you pack.
What this means for U.S. immigrants and visa holders (Tax year 2026 context)
These are Indian customs rules, not a change to U.S. federal income tax for tax year 2026 (returns filed in 2027). Still, immigrants in the U.S. often coordinate cross-border moves and reporting.
Three practical reminders:
- U.S. tax residents (many H-1B, L-1, and green card holders) generally report worldwide income. See IRS Publication 519 for residency rules.
- If your overseas travel involves foreign accounts or moving funds, review IRS international tax rules. Customs allowances are separate from U.S. reporting.
- If you buy items abroad for a self-employed U.S. business, keep invoices. Your tax preparer may need them when preparing deductions or depreciation. Official IRS forms and publications can help confirm recordkeeping expectations.
Recommended actions and timeline
Now (before travel)
- Classify your arrival mode. Air/sea rules differ from land border treatment.
- Plan baggage contents around the correct category: resident, tourist of Indian origin, or foreign tourist.
- Set up a receipts folder on your phone for quick presentation.
At purchase time
- Keep invoices showing item description, price, and currency.
- For jewelry, keep documentation supporting weight and eligibility conditions.
On arrival (after Feb. 2, 2026)
- Declare when required. Non-declaration can create penalty exposure.
- Be ready to show invoices and travel documents.
For travelers with mixed facts—dual passports, recent moves, or high-value items—get advice from a customs broker or qualified tax professional before travel.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.
