About Marine Republic. Post Top Ad. Income Tax rules for Indian Seafarers for F. Finances, Popular, Trending. Income tax rules for Indian sailors are different than other Indian citizens. These rules are unclear to most of the CAs and even to Income Tax officials. In this article we will try to explain these rules in simple terms. We will cover following topics in this article. What is NRI status?

Case 1 : Ship is Foreign Going and salary is in foreign currency. Case 2 : Ship sometimes coming to India and salary is in foreign currency. Note : At least one Port in the voyage should be Foreign Port. Watch the video for more description : Case 3 : Ship is always sailing in Indian waters Full time coastal ship. Points to Remember :. Dates stamped should be included for counting days stayed outside India. Tags Finances Popular Trending. Tweet Share Pin it Comment. Email This BlogThis!

income tax return for seafarers in india

Trending FinancesPopularTrending. Newer Post Older Post Home. Follow by Email. Powered by Blogger. Recent Posts. Search This Blog. List of companies giving sponsorship to Merchant Navy candidates. Full explanation. Watch their Dramatic rescue. The Offshore support vessel coastal Jaguar caught massive fire after an explosion on 12 August at All 29 crew members j Funniest Reason for 2 days ship delay in departure from port.

Two monkeys delayed the departure of a cargo ship from Chennai by two days. The monkeys virtually played hide and seek with the ship cr Pilot falls from Pilot Ladder while boarding.

Falls in water and dies.

income tax return for seafarers in india

Senior Marine pilot captain V. Gupta fell from the The Pilot ladder while boarding the ship on 10th August at Mumbai inner Anch The biggest advantage of seafarers profession in India is exemption from income tax.

If one completes NRI days in a financial year that Stena Bulk writes to Indian Prime Minister for help to release ship.However, from FYthis was done away with and tax slabs for men and women were made the same.

income tax return for seafarers in india

Anyone claiming tax exemptions of more than Rs 2. However, there are certain incomes that are exempt. Indian seafarers will be eligible to be placed on ships under the flag of another country for employment, thus leading to increased employment opportunities, the government said.

To see if the new regime is beneficial, each individual will have to make their own calculations. Nirmala Sitharaman in her Budget speech had offered incentives for sovereign wealth funds of foreign governments in the priority sectors. While choosing the right tax saver, among several other factors such as safety, liquidity and returns, make sure you understand how the retu Papers show that neither defence minister Rajnath Singh nor finance minister Nirmala Sitharaman were kept in the loop when the decision was taken.

In the new tax regime, the tax benefit available on employee's own contribution to EPF account is impacted. All rights reserved. For reprint rights: Times Syndication Service. Have you read these stories? Guardians of global economy come up short in virus fight Updated: Apr 19, The International Monetary Fund fails to agree to pump more liquidity into world economy. Inside Amazon's fight to stave off coronavirus How remote areas are coping with Covid days Coronavirus Live updates: Donald Trump warns China of consequences Covid red zones face long road to normalcy.

Brand Solutions. TomorrowMakers Let's get smarter about money. ET NOW. ET Portfolio. What are the income tax exemptions and other monetary benefits available to women? How to claim tax exemption under section 54F? All News Videos Photos. Claiming deductions of more than Rs 2.

Incomes that are exempted under the proposed new tax regime 12 Feb,AM IST 70 deductions will be removed in the new regime. Cabinet clears decks for more seafarer jobs 23 Jan,AM IST Indian seafarers will be eligible to be placed on ships under the flag of another country for employment, thus leading to increased employment opportunities, the government said.

New income tax regime vs old: Which is better for you?

income tax return for seafarers in india

Sovereign wealth funds look at infrastructure sector 28 Feb,AM IST Nirmala Sitharaman in her Budget speech had offered incentives for sovereign wealth funds of foreign governments in the priority sectors. How to get a double benefit on your tax-saving this FY 28 Feb,AM IST While choosing the right tax saver, among several other factors such as safety, liquidity and returns, make sure you understand how the retu Popular Categories Markets Live!

Follow us on. Download et app. Become a member.Rohit Pithisaria founded TaxAdda in July He is Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He is actively writing from very beginning of his professional career and is author of various tax articles and blogs.

He has filed more than Income tax returns for seafarers. Home Blog Menu. Buy Now. Readers say. I had many confusions regarding taxability of seafarers. It's a great reading. Manoj Maheshwari Seafarer. Get all the doubts cleared in less than an hour with this book. Simple and easy to understand language.

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HOW TO FILE INCOME TAX RETURN FOR NRI HAVING PROPERTY AND INTEREST INCOME- AY 2014 15 - NRI TAXATION

Includes Six Months Free Updates. Easy To Understand Language. Special Service For Seafarer. Serving More Than Clients. Unlimited Tax Consultation. Other Service. Know Your Author. CA Rohit Pithisaria.A sailor, seaman, mariner or a seafarer is a person who navigates water bone vessels or assists as a crew member in their operation and maintenance.

Seafarer holds a variety of ranks and professions, each of which carries unique responsibilities which are integral to the successful operation of an ocean-going vessel. Other than this saloon staff will comprise of Chief Cook and General Stewart but the number and rank of crew members serving on a ship will vary according to the size of the vessel, trade area of the vessel, Minimum Safe Manning certificate, administration etc.

Seafarer income tax return

The taxability of salary received by a seafarer is based on the residential status of the seafarer. Resident Seafarer. The salary received by a resident seafarer will be taxable as per the laws of the Income tax department. No special exemption is available. Non-Resident Seafarer. The salary of a non-resident seafarer will not be included in the total taxable income of the seafarer.

An individual is said to be Non-Resident Seafarer if he is outside India for days or more during the financial year days or more in case of leap year. Calculation of period outside India. Stamping dates in the passport is the basic criteria for calcaultion of period outside India. Generally, passport dates are used when you join and sign off from ship outside India.

However when you join or sign off from India then the CDC dates shall be used for calculation of period outside India. As per Notification No. Note:- As per Circular No. This circular specifically clarify if below conditions are met then the salary received will not be included in the total income of the individual. However, it does not mean if you have received a salary from an Indian flagship then it is taxable as above circular is silent in this case.

The above circular is just a clarification issue by CBDT for a specific condition.

New Indian Tax Rules for NRI – 2020 Good & Bad News

Hello Mr. CDC is conclusive evidence for working on a ship so it is better to have the proper stamps on CDC for sign in and sign off. We suggest you to file your ITR every year. Yes, the stamps on the passport will definitely help you to prove your status as Non-Resident. If i m sailing for more then days outside India, and my salary is deposited in a saveing account, in such a case m i eligible to pay tax?Impact on the Residential Status of Seafarer after reduction in number of days in Budget from days to days for deciding the residential status in India.

As per the existing provision, it meant that any seafarer who is an Indian citizen leaves India in any year as a crew member of ship shall be considered as Non Resident if his stay in India is less than days in the current year or in the last four years, the stay is less than days in total.

As per Notification No.

Income Tax rules for Indian Seafarers 2018 for F.G. and Coastal ships.

Also, when a seafarer is coming to India for spending time with family time after sailing, then also he has to stay in India for less than days in order to qualify as Non-Resident. Example 1 — A Seafarer joins the ship and the ship is only sailing in Indian Waters for a period of days in FY Also, the seafarer has stayed in India in past 4 years for days. In this case the seafarer shall be resident of India since in order for a seafarer to become a resident of India, both the conditions should be satisfied ie days or more in the current year and days or more in the last 4 years.

Example 2 — A Seafarer joins the ship and the ship is only sailing in Indian Waters for a period of days in FY But the seafarer has stayed in India in past 4 years for days. In this case the seafarer shall be Non-resident of India since in last 4 years he has been in India for less than days although his stay in India is days or more in the current year.

Example 3 — A Seafarer joins the ship and the ship is only sailing in Indian Waters for a period of days in FY In this case the seafarer shall be Non-resident of India since in the current year he has been in India for less the days although his stay in India in last 4 years is days or more. Example 4 — A Seafarer does his sign-on on 1 st May and signs off on 1 st January Both the dates are mentioned in the CDC of the Seafarer.

Hence the period from sign on to sign off shall be days. However, from 1 st May to 1 st Julythe ship was in Indian Waters only. Hence the total number of the days which the ship was in Indian Water was 92 days. However as per Income Tax Act, the period for which the ship was in Indian waters shall also be considered for deciding the number of days a seafarer is outside India, if the ship was sailing from a port in India to a port outside India or Vice versa.

Hence the period from sign on and sign off mentioned in CDC shall be taken into consideration. Therefore, the seafarer is a non- resident since his stay in India is just days which is less than days. Everything as per the existing provision is same except the fact that when a Non-Resident is visiting India, he has to stay in India for less than days in order to qualify as a Non- Resident.

Hence the question is whether the change in the number of days would impact the seafarer or not? As per my view, there is a specific clause for seafarer that he shall be a Non Resident, if his stay in India is less than days in the current year or in the last four years, the stay is less than days in total in India, then the number of days which is reduced to days shall not be applicable to seafarer.

They keep on sailing on ships.In the instant case, the employer has directly credited the salary, for services rendered outside India, into the NRE bank account of the seafarer in India. In our considered opinion, the aforesaid Circular is vague in as much as it does not specify as to whether the Circular covers either of the situations or both the situations contemplated above.

Hence we deem it fit to give the benefit of doubt to the assessee by holding that the Circular covers both the situations referred to above. The result of such interpretation of the Circular would be that the provisions of Sec. Be that as it may, it is well settled that the Circulars issued by CBDT are binding on the revenue authorities. While adjudicating the issue, Their Lordships taking note of the Circular No.

We concur with the ratio of the decision of the Karnataka High Court and in our opinion the interpretation be given to sub section b of Section 5 2 of the Act would also apply to Section 5 2 a of the Act. The Circular is clarificatory in nature and is applicable for construing the aforesaid provision for the relevant assessment year. In our opinion the authorities under the Income Tax Act did not properly apply the provisions of law to the case of the assessee.

We are of the view that the Assessing Officer was wrong in adding the aforesaid sum to the income chargeable to tax of the assessee for the relevant assessment year. We accordingly allow the appeal and answer the question framed by us in favour of the assessee. This is an appeal filed by the assessee against the order of Ld. CIT AKolkata dated The only issue to be decided in this appeal of assessee is as to whether the remuneration received by the assessee in the sum of Rs.

Brief facts of the case are that the assessee is a non-resident individual and for the AY under appeal i. The assessee is engaged for his service as Captain of the ship in a Foreign Shipping company Crew. The assessee was paid Rs. The assessee stated that the above income was received from outside India in foreign currency and, therefore, claimed as exempt.

The assessee stated that he used to get his contract to do service with foreign shipping company. According to the assessee, the AO accepted the residential status of the assessee as non-resident after verification of copy of passport and other details submitted, however was of the opinion to tax the same since it was credited in the bank account of assessee.

The AO issued show cause notice to the assessee as to why the remuneration received in India should not be brought to tax in terms of section 5 2 a of the Act. But later on vide submission dated We have created this page to share the latest news about NRI tax in India. Updated — February The budget for the financial year was presented by Finance Minister Nirmala Sitharam on 1st Feb Let us look at its impact on NRIs —.

Note: This is based on the current information that is available. If there will be any clarification or additional information — I will try to update this.

Who is an NRI? Till now, a person who spent days or more outside of India was considered an Indian. This has been changed. This change is brought to bring them under the tax net. Until now, individuals who go out of India for employment were considered as NRIs if they stay in India for less than days. This duration of stay is now reduced to days. To qualify as NRIs, Indians will have to be tax residents of another country apart from the stay regulations that I mentioned above.

If the NRI is not paying tax because of visa status or domicile status. Revenue Secy: Some people are residents of no country.

They may be staying in different countries for certain number of days. The government also issued one more clarification after this but tax experts are not satisfied. Will there be a tax on the salaried individuals in the UAE or any other middle east country where his income is tax-free? My understanding is their income will not be taxed in India as they are residents of those countries. The only thing is they have to make sure they stay outside India for more than days.


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