🚢 Exciting news for seafarers and taxpayers alike!
The latest tax reforms bring a big wave of relief, especially for thosenavigating the seas. The new tax provisions promise zero tax up to ₹12 lakh,and better clarity for those working abroad, including seafarers!
💼Let’s dive into the tax updates that could help you save more money andsimplify your tax filing process, whether you’re on the seas or ashore⚓
Revised Tax Slabs for FY2025-26 📊
HERE’S HOW THE NEW TAX SLABS APPLY:
As a seafarer, you’ll be able to use taxsavings for your family back home, or tobuild your future!
New ITR-U Guidelines forLate Filers ⏳
THE UNION BUDGET 2025-26INTRODUCES NEW GUIDELINES FORITR-U (UPDATED RETURN) FILINGS.
IF YOU MISSED FILING YOURINCOME TAX RETURN ON TIME,HERE'S WHAT YOU NEED TO KNOW:
⚖️ Filing on time is crucial! Seafarers often face challenges due to their location, but it’s important to stay on top of deadlines to avoid extra penalties. Filing on time can save you money and headaches. 📝
HERE ARE THE KEY TAKEAWAYS REGARDINGTHE "ZERO TAX UP TO ₹12 LAKH" CLAIM ANDHOW IT WORKS 🌍💵:
Important Clarification on Tax-Free Income:
While it’s true that income up to ₹12 lakh (or ₹12.75 lakh for salaried individuals) could be tax-free due to rebates, it’s not an across-the-board rule.
The rebate is applicable to salaried individuals earning up to₹12.75 lakh, where the tax amount is offset by the rebate.
However, if you earn even ₹1 more than ₹12.75 lakh, you will be subject to taxes according to the slabs, and no rebate will apply.
Real-Life Scenarios for Seafarers:
A Seafarer earning ₹12.75 lakh may pay no tax, while one earning ₹12.76 lakh might have to pay₹62,500 in taxes. However, marginal relief ensures that the tax burden is minimal. 🧳
Tax Impact Comparison: Present vs Proposed🧐
New Income Tax Bill – What It Means for Seafarers 📜🌍
Finance Minister Nirmala Sitharaman has announced a new Income Tax Bill set to be introduced next week. This will provide better clarity and simplified tax rules, especially for those working abroad, including seafarers.
What Does This Mean for Seafarers?
🌊NRI Status & Tax Compliance: Many seafarers face challenges with their NRI status and tax compliances when it comes to income earned in India. The new bill could simplify the rules, offering higher exemptions and reduced complexities for Seafarers.
Clearer Residency Rules: Updates to the residency rules might bring more tax clarity, especially for seafarers.
What’s Next for Seafarers? 📅
Stay tuned for Part 2 of our Budget News letter, where we’ll break down the new Income Tax Bill once it’s officially introduced. We’ll provide detailed insights on how the bill affects you as a seafarer 🔍
Comments