How is NRI days calculated in seafarers?
Seafarers who stay in India for less than 182 days i.e., they sail outside India for 184 days or more, will be classified as a Non-Resident Indian (NRI) for the FY 2020-21. Being a Non-resident Indian, income earned outside India is not taxable in India.
How many days NRI can stay out of India?
A seafarer serving on Indian ships outside India for a period of 182 days or more in a year is considered to be a non-resident. However, the time spent by a ship in Indian territorial waters is considered as period of service in India, according to tax rules framed in 1990.
How is NRI status calculated for days?
Previous Year is period of 12 months from 1st April to 31st March. Number of days stay in India is to be counted during this period. Both the Day of Arrival into India and the Day of Departure from India are counted as the days of stay in India (i.e. 2 days stay in India).
Are Mariners NRI?
– Generally, seafarers (or merchant navy workers) are Citizens of India, and based on their number of days stay in India, are classified as Non-Resident or NRI. Just like any other person, if a seafarer stays in India for 182 days or more during a financial year, then he shall be considered Resident in India.
Does seafarers need to pay tax in India?
Tax on the income of a seafarer is applied based on his/ her residential status. The salary of a resident seafarer or merchant navy personnel will be taxed as per the Indian Income Tax Law. There are no income tax exemptions for merchant mariners/ seafarers.
Do seafarers pay tax?
The Seafarers’ Earnings Deduction permits 100% of on-board earnings to be free of UK income tax. There are a number of conditions. The most important is that the earnings must relate to a qualifying of at least 365 days.
How many days can I stay out of India?
As per the changes, an Indian citizen will now have to stay out of the country for 240 days, against 182 previously to become a non-resident, said Revenue Secretary Ajay Bhushan Pandey on Saturday.
Do Indian seafarers have to pay tax?
How is residential days calculated in India?
A taxpayer would qualify as a resident of India if he satisfies one of the following 2 conditions :
- Stay in India for a year is 182 days or more or.
- Stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year.
Which bank is best for seafarers?
HDFC Bank Seafarer’s Bank Account is ideal for sailors who spend many months at sea wandering from port to port.
Do seafarers pay tax in India?
Is a seafarer an NRI in India?
A Seafarer is a Non-Resident Indian (NRI) in any 9 FY’s out of preceding 10 FY’s OR 2 (b). A Seafarer stays in India for less than or equal to 729 days in preceding 10 FY’s
What is the status of seafarers in India for FY2021?
Seafarers who stay in India for less than 182 days i.e., they sail outside India for 184 days or more, will be classified as a Non-Resident Indian (NRI) for the FY 2020-21. Being a Non-resident Indian, income earned outside India is not taxable in India.
How many days does a seafarer stay in India?
A seafarer stays in India for more than 182 days in a FY AND 2 (a). A Seafarer is a Non-Resident Indian (NRI) in any 9 FY’s out of preceding 10 FY’s OR 2 (b). A Seafarer stays in India for less than or equal to 729 days in preceding 10 FY’s
Is the new rule of 120 days applicable to seafarers?
Therefore, the new rule of 120 days shall not be applicable to seafarers. Even if a seafarer stays in India for more than 120 days and his taxable income from India exceeds Rs.15 lakhs, the residential status of the seafarer will be Resident & Non-Ordinary Resident (RNOR) for the FY 2020-21.