FREQUENTLY ASKED
QUESTIONS (FAQ's)
01. I have stayed outside India for a period of 210 days. Whether the salary received shall be taxable in India?
The salary shall be tax free since the seafarer becomes a non-resident as he has stayed outside India for 184 days or more (185 days or more in case of leap year)
02. I have joined ship from India on 23rd May 2019 and the signing off is in USA on 26th January 2019. Both the dates are mentioned in CDC. Should I use my passport dates or CDC dates for calculating the period outside India?
The period outside India shall be from 23rd May 2019 to 26th January 2019 i.e. CDC
dates.
03. I have left India on 17th May 2019, but the actual joining from Singapore as mentioned on CDC is 23rd May 2019. There can be two possibilities.
a) The sign off is in Indian port in Cochin on 25th Dec 2019 as mentioned in CDC
As per Notification No 70/2015/ F.No.142 /12/2015-TPL, the date of period outside India shall be calculated from 23rd May 2019 to 25th Dec 2019 and not from 17th May 2019 since the sign on is from Singapore and sign off is in India.
b) The sign off is in USA on 25th Dec 2019 as mentioned in CDC
The period outside India shall be calculated from 17th May 2019 to 25th Dec 2019 since the sign on is from Singapore and sign off is in USA.
04. If there is shortfall of 10 days in maintaining my Non-Resident Status, then can I go out for a vacation to complete the Non-resident status?
No, it has to be only for the purpose of employment and not for vacation.
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05. I have signed on from India on 23rd May 2019 and signed off in Australia on 20th Dec 2019. But I am staying in Australia for 10 days till 30th December 2019 to explore Australia for a vacation. From which date will the period outside India shall be calculated?
The period outside India shall be calculated from 23rd May 2019 to 20th Dec 2019 and not from 23rd May 2019 to 30th December 2019 since the 10 days are for vacation and not for employment.
06. Whether Salary received by Non-Resident seafarer in NRO account is exempt from tax?
The salary will be exempt from tax even if received in NRO account. But it is advisable to receive the salary in NRE account to avoid litigations.
07. I have completed non-resident status but TDS is deducted on the salary received. Hence whether the same is taxable in India?
Not Taxable, but you can claim refund by filing income tax return in India.
08. I am a non-resident seafarer and I have got an advance of USD 5000$ at the time of sign off. Whether the same is taxable?
Normally cash advance is a part of salary and therefore it is taxable. But since you are a non- resident seafarer, the same will not be taxable if you deposit in NRE Account.
09. I am a non- resident seafarer. What if I have not filed my return of income?
Normally, the amount received by a Non Resident Seafarer in his NRE account is not taxable. However, still it is advisable to Income Tax Return because of the following reasons
a) To claim refund of TDS
b) To apply for housing loans or any other loan
c) While purchasing property it is mandatory to submit PAN and hence if you do not file your Income Tax Return, the Income Tax Department can question the sources of income from where the property has been purchased.
d) Incurred expenditure of more than INR 2 lakh for any travel to foreign country.
e) Incurred expenditure of more than INR 1 lakh towards consumption of electricity
f) Deposited amount of INR.1 crores in Bank Account.
10. I am unable to complete my non-resident status for the financial year. What if I can take most of my salary as cash on the ship rather than sending it in my bank account to save tax?
You are required to report your total salary as income rather than the amount transferred into your bank account against salary. In case, if the filed return get selected for scrutiny, you have to provide the salary slips, signed contract etc. to validate the deposit into your bank account.
11. Whether the amendment in Budget 2020 is applicable to seafarers?
The amendment in Budget 2020 is not applicable to seafarers.
