Tax for Seafarers
3 years ago
I'm a seafarer and has not completed 182 days during the year 20-21. So, I'm resident Indian during 20-21. If I receive the salary for the months Dec'20-Mar'21 after Apr'21 and I become NRI for the year 21-22, will the income for the months Dec'20-Mar'21 received in Apr'21 will attract tax? Please clarify.
Thank you.
Ankur Goel @ Complete Law Shield
Responded 3 years ago
A.All CA are still not dead or arrested to answer this.
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A.Hi,
yes, Currently, to qualify for non-resident Indian (NRI) status, like any other citizen of India, a seafarer has to be outside India for 182 days, or six months in a year. Consequently, his entire foreign income is not subjected to tax.
It is also a double whammy for Indian seafarers, Because, even if you are outside India for 240 days as per the new rules and qualify for NRI status, if you don’t pay tax in the country or jurisdiction where you are an NRI, your entire income earned outside will be taxed in India and hence will have to pay tax in India.
yes, Currently, to qualify for non-resident Indian (NRI) status, like any other citizen of India, a seafarer has to be outside India for 182 days, or six months in a year. Consequently, his entire foreign income is not subjected to tax.
It is also a double whammy for Indian seafarers, Because, even if you are outside India for 240 days as per the new rules and qualify for NRI status, if you don’t pay tax in the country or jurisdiction where you are an NRI, your entire income earned outside will be taxed in India and hence will have to pay tax in India.
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Ayantika Mondal @ Prime Legal
Responded 3 years ago
A.Hi,
Currently, to qualify for non-resident Indian (NRI) status, like any other citizen of India, a seafarer has to be outside India for 182 days, or six months in a year. Consequently, his entire foreign income is not subjected to tax.
It is also a double whammy for Indian seafarers, Because, even if you are outside India for 240 days as per the new rules and qualify for NRI status, if you don’t pay tax in the country or jurisdiction where you are an NRI, your entire income earned outside will be taxed in India and hence will have to pay tax in India.
Currently, to qualify for non-resident Indian (NRI) status, like any other citizen of India, a seafarer has to be outside India for 182 days, or six months in a year. Consequently, his entire foreign income is not subjected to tax.
It is also a double whammy for Indian seafarers, Because, even if you are outside India for 240 days as per the new rules and qualify for NRI status, if you don’t pay tax in the country or jurisdiction where you are an NRI, your entire income earned outside will be taxed in India and hence will have to pay tax in India.
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