RESIDENTIAL STATUS:

As per Section 6 of Income Tax Act, 1961, a Seafarer shall be Non-resident if he stays outside India for a period of 184 days or more (185 days or more in case of leap year) for the purpose of employment.

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CALCULATION OF PERIOD OUTSIDE INDIA:

As per Notification No. 70/2015/ F.No.142 /12/2015-TPL, period beginning on the date entered into the CDC in respect of joining the ship by the individual for the eligible voyage and ending on the date entered into the CDC in respect of signing off by that individual from the ship in respect of such voyage should be considered as period outside India.

“Eligible voyage” shall mean a voyage undertaken by a ship engaged in the carriage of passengers or freight in international traffic where-

(i) for the voyage having originated from any port in India, has its destination at any port outside India; and

(ii) for the voyage having originated from any port outside India, has its destination at any port in India.

 

EXEMPTION OF SALARY RECEIVED BY NON - RESIDENT SEAFARER IN HIS NRE ACCOUNT:

Salary received by Non-Resident seafarer in his NRE account for services rendered outside India on a ship is exempt from tax.

 

FILING OF RETURN OF INCOME:

A Non-resident seafarer is required to file Income tax Return when his total income before claiming any deductions (like LIC, Mediclaim etc.) exceeds Rs 2.5 lacs.

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Also, return is required to file by the seafarer, if he has - 

a) Deposited amount of 1 crores in current accounts.

b) Incurred expenditure of more than 2 lakhs for any travel to foreign country.

c) Incurred expenditure of more than 1 lakhs towards consumption of electricity.