Discover how the new ₹7.5 lakh duty-free limit impacts your move from the USA to India, including benefits, eligibility, and key customs rules.
Moving from the USA to India involves comprehensive planning. You need to decide what to pack, what to ship, and what to sell before leaving. Customs rules are an important part of the process. The Central Government notified the Baggage Rules, 2026 under the Customs Act, 1962. The rules, issued through CBIC’s customs framework, superseded the Baggage Rules, 2016 and came into force on 2 February 2026.
One important change is the ₹7.5 lakh Transfer of Residence (ToR) allowance for eligible returning residents and tourists of Indian origin who stay abroad for at least 2 years immediately before arriving in India, subject to limits on short visits to India and a three-year bar on using the same concession earlier.
The higher limit gives more flexibility to eligible returning residents and tourists of Indian origin. The allowance comes with specific conditions and does not apply to every item. In this blog, we tell you how the ₹7.5 lakh duty-free allowance affects your move from the USA to India.
Transfer of Residence (ToR) is the customs facility for people who move to India after living abroad for a long time. It is different from a short visit to India to meet family or for a holiday. If you live in the USA, you should set up home there and back to India, ToR rules may allow you to move with your eligible appliances, furniture, electronics, and personal goods with duty-free benefits.
The new 2026 rules may increase the limit from ₹5 lakh to ₹7.5 lakh and give flexibility to eligible returning residents planning their move from the USA to India.
The ToR figures are not the universal cap for every item a person owns. Used personal goods for daily life are covered under Rule 3, whereas the general ₹75,000 allowance, jewellery concession, and one-new-laptop allowance have their own conditions.
The ₹7.5 lakh amount applies to the qualifying additional personal and household articles brought under the ToR provision. Here are the new duty-free slabs applicable for relocation
Overseas-stay category for a returning resident/tourist of Indian origin |
ToR allowance for eligible personal and household articles |
Key conditions |
|---|---|---|
| From 3 months up to 12 months | ₹1.5 lakh | No additional condition applicable. |
| Minimum stay of 1 year during the preceding 2 years | ₹3 lakh | The concession must not have been used in the previous 3 years. |
| Minimum stay of 2 years abroad immediately before arrival | ₹7.5 lakh | India visits during the preceding 2 years must generally not exceed 6 months, and the concession must not have been used in the previous 3 years. |
Along with the ToR cap, returning travelers can also access the General Duty-Free Passenger Allowance of ₹75,000 (up from ₹50,000) for items carried in accompanied baggage.
A long-term move from the USA to India involves a large amount of personal property. You may have the
The lower Transfer of Residence limits make it difficult to bring the substantial portion of your belongings without encountering the additional customs costs. The revised ₹7.5 lakh ceiling change is applicable for eligible people who stay abroad for more than 2 years.
Rather than treating your international move as an ordinary holiday trip, you should plan it as a formal transfer of residence and assess your belongings against the applicable TR allowance.
People may think that every person arriving from the USA to India can bring ₹7.5 lakh worth of goods duty-free under the new rule. But this is not how the rules work.
The standard general free allowance for a resident, a tourist of Indian origin, or a foreigner holding a valid visa other than a tourist visa is ₹75,000 when arriving by mode other than land.
Tourists of foreign origin have the ₹25,000 general allowance. The ₹7.5 lakh amount applies to eligible passengers who meet the relevant conditions under the Transfer of Residence provisions.
For example:
You lived in the USA for eight months and returned to India. You cannot automatically claim the ₹7.5 lakh TR allowance.
You live in the USA for 18 months. The applicable TR allowance is ₹3 lakh, subject to eligibility and applicable conditions.
If you live in the USA for more than 2 years and transfer your residence to India, you qualify for the ₹7.5 lakh TR allowance, subject to applicable rules.
So, the length of stay abroad is the first thing you should consider before planning your move to India.
The 2026 shipment rules have updated the list of household goods that are covered under Transfer of Residence. It includes many common appliances and electronics used in modern homes. These include microwave ovens, air conditioners, washing machines, cooking ranges, air fryers, computers, laptops, and robot vacuum cleaners, subject to applicable rules and limits.
It makes it easier for people moving from the USA to India to understand which household items may qualify rather than rely on an outdated list.
Gold jewellery is another important consideration while returning to India. The 2026 rules have changed the way duty-free jewellery is treated for eligible passengers. For eligible residents who stay abroad for more than 1 year, the duty-free allowance is based on weight.
It makes the allowance easier to understand because it is based on the weight of the jewelry instead of an old fixed value limit. Jewelry rules are separate from the ₹7.5 lakh Transfer of Residence allowance.
If the value of the eligible household goods goes above the ₹7.5 lakh Transfer of Residence limit, the excess amount may attract customs duty. The 2026 rules give the lower basic customs duty rate for eligible excess baggage as compared to earlier rules.
The rules may allow Annexure II household articles under Transfer of Residence only up to one unit of each listed item. For example, the list includes items such as an air conditioner, washing machine, refrigerator, television, laptop/notepad, air fryer and robotic vacuum cleaner. The value cap and the applicable eligibility conditions still apply.
People returning from the USA may also bring the personal goods used for work or daily life. This includes cameras, laptops, musical tools, and other equipment, depending on the applicable customs rules. The 2026 rules also provide a concession for one new laptop, including a notepad, for passengers aged 18 or above, other than crew members.
If you are carrying professional equipment, then don’t assume that every item is duty-free. You should check the specific customs requirements before packing and declare items correctly when required.
The Baggage Rules, 2026 do not set out a complete pet import allowance or document checklist; they state that pet imports are governed by requirements notified by relevant Central Government ministry, department or authority.
Before Shipping from the USA to India, you should confirm the current animal quarantine and other import requirements, including any health, veterinary certification, vaccination, and clearance requirements.
The new rules give various benefits, but some important conditions still apply. You should keep these points in mind while planning relocation to India from USA.
The Transfer of Residence facility is to move personal and household goods. It is not meant for bringing goods into India for commercial or resale purposes.
The one-unit-per-family rule also applies for listed household goods. A higher ₹7.5 lakh allowance does not mean that you can bring multiple units of the same appliance duty-free.
Transfer of Residence benefits come with certain conditions, including requirements regarding your stay in India. If you live in India before meeting the applicable conditions, then you need to pay the customs duty and interest.
Tobacco, alcohol, gold, silver and other restricted goods may have separate duties or limits. Don’t assume that these goods are automatically covered by the ₹7.5 lakh allowance.
If you carry goods that need to be declared, then you should complete the customs declaration online before arriving in India. As per the 2026 rules, passengers need to submit their baggage declaration electronically through the ATITHI app or ICEGATE portal.
You should prepare the declaration earlier to make the customs process easier and avoid delays at the airport. If you carry dutiable or restricted goods, you should follow the declaration process and use the customs channel on arrival.
The new ₹7.5 lakh Transfer of Residence (TR) allowance provides more flexibility to eligible Indians returning from the USA. The limit has increased from ₹5 lakh and provides the additional ₹2.5 lakh duty-free value limit to eligible passengers.
It reduces the need to sell or replace useful household goods before moving. However, you should remember that the duty-free allowance does not mean free shipping. You have to compare the customs benefits with freight insurance and handling costs before deciding what to bring.
A family returning to India after 4 years in the USA may have the appliances, furniture, clothing, books, electronics, and personal goods. Rather than only adding the values of everything, you should check every item under applicable Indian customs and Transfer of Residence rules. Used personal effects, eligible jewelry, household goods, and laptops may have different customs provisions.
This approach supports families to decide what to ship from the USA to India, what to sell, and what is cheaper to buy before arrival.
If you want to move to India from the USA, you should focus on preparation and avoid the unexpected costs and customs issues.
If you have lived abroad for over 2 years, then you should check whether you qualify for the ₹7.5 lakh Transfer of Residence allowance. Complete the travel history and other circumstances to become eligible to move.
You should list the household items you want to bring. Keep the receipts and estimated values for expensive items to easily clear the customs declarations and insurance.
You have to review the current list of eligible household goods before shipping. Don’t use the older information based on the 2016 rules.
The duty-free jewelry limit is 40 grams for women and 20 grams for other passengers. You should adhere to these limits while relocating to India.
If you move the declared goods, then you should complete the required declaration before or during your arrival in India and adhere to applicable customs processes.
If you leave India again soon after moving back, you should check the applicable Transfer of Residence conditions with Customs before shipping your goods.
A higher duty-free limit may change how much you ship. You should compare the insurance, shipping and handling costs with costs of purchasing replacements in India.
Moving to India from the USA involves more than packing your goods and booking the shipment. Customs rules vary, especially while using the ₹7.5 lakh Transfer of Residence allowance. You should avoid the following common mistakes to avoid delays, extra costs, and problems at customs.
The ₹7.5 lakh allowance is linked to eligible Transfer of Residence cases. It does not apply to every international traveller entering India. Your eligibility may depend on factors such as stay abroad and whether you need the customs conditions.
This figure represents the customs duty-free value limit for eligible goods under Transfer of Residence provisions. It is not a cash benefit, payment, or reimbursement provided by the government to people returning to India after living abroad.
Every item in the shipment does not automatically receive the duty-free payment. Some goods are excluded or governed by separate customs provisions. Before shipping goods from the USA, you should check whether the individual products fall within the permitted Transfer of Residence categories.
A duty-free customs allowance does not make international transportation fees. You still need to pay freight, packing, insurance, handling, documentation and local delivery charges. You should compare these costs with replacement costs before deciding what to ship.
Don’t provide an artificially low value for your belongings in the allowance, because it may create customs problems. Incomplete or incorrect declarations may result in additional assessment, penalties, detention, and other action. You should keep the genuine purchase records and declare goods accurately.
Passengers do not only combine their individual general free allowance to bring expensive articles duty-free. Each passenger’s entitlement is assessed separately under the rules. Families who are moving together must understand each person’s eligibility rather than assuming the allowances.
Transfer of Residence benefits are applicable to genuine personal and household belongings, not to commercial imports. Goods carried in commercial quantities may not qualify as bona fide passenger baggage. You should import the stock by following the appropriate commercial customs procedures, but don’t treat the commercial goods as household goods.
The Baggage Rules, 2026 give the higher Transfer of Residence allowance of up to ₹7.5 lakh to eligible returning residents and tourists of Indian origin. They need to meet the necessary eligibility criteria that include the minimum two-year overseas-stay requirement and the related conditions. The rules took effect on 2 February 2026 and replaced the 2016 framework.
The ₹7.5 lakh allowance is not a duty-free entitlement for every traveller or every item in a relocation shipment. It applies to the qualifying household and personal goods under Transfer of Residence provisions. The ₹75,000 general allowance, jewellery, and one new laptop or notepad and used daily personal effects are governed by separate provisions.
Before shipping your goods to India, you should prepare the itemized inventory, separate the used household goods from personal effects listed under Annexure II, and obtain value evidence for expensive items. Moreover, you should also review the unaccompanied-baggage timeline and make accurate customs declarations. For high-value, unusual, or borderline items, you should get confirmation from Indian customs or a qualified customs professional before dispatching your goods. Trust Jio Worldwide to simplify your USA-to-India move, they can handle everything from careful packing to reliable international delivery.
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