Do merchant navy people pay taxes?

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 Indian seafarers have to pay tax?

Generally, taxable income in India of most of the seafarers do not exceed Rs. 15 lakhs. 15 lakhs, the residential status of the seafarer will be Resident & Non-Ordinary Resident (RNOR) for the FY 2020-21. Thus, the seafarer will not be required to pay any tax in India on the income earned from sailing in foreign ship.

Is salary earned from working abroad taxed in India?

Income which is earned outside India is not taxable in India. Interest earned on an NRE account and FCNR account is tax-free. Interest on NRO account is taxable for an NRI.

Do seafarers pay income tax?

Section 23 (C) of the National Internal Revenue Code of 1997, as amended states that an individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income from sources within the Philippines: Provided, That a seaman who is a citizen of the …

Which ITR to file for seafarers?

Ans: Everyone, including seafarer or mariners, need to file an ITR in India if there is any income taxable in India. Filing of ITR in India has no connection with the Residential status of seafarer. Seafarers NRIs have to choose Form 2 for ITR filing.

Do merchant navy officers pay tax in India?

The salary received by a resident seafarer or Merchant Navy will be taxable as per the laws of the Income-tax department. No special exemption is available. The salary of a non-resident seafarer will NOT be included in the total taxable income of the seafarer.

Why are seafarers exempt from paying taxes?

What Is The Seafarer Tax Exemption. The fee imposed by taxing travel is one of the most reliable sources of income for any country. Originally imposed to reduce and conserve foreign exchange, today, the sole purpose of these travel taxes is to generate funds for tourism-related programs and projects.

Which income of NRI is taxable in India?

NRI or not, any individual whose income exceeds Rs 2,50,000 is required to file an income tax return in India.

Why are seafarers exempt from tax?

The seafarer tax exemption recognizes the economic contribution these types of workers bring to the country. These types of tax exemptions are not only accustomed to the Philippines. Before traveling, we encourage seafarers to check with their local authorities on how travel laws may apply in their countries.

Are seafarers considered as OFW?

Note: An Overseas Filipino Worker or OFW is a person from the Philippines who is living and working in another country, typically on a temporary basis. This includes land-based OFWs and seafarers/sea-based OFWs. Families traveling together with at least one OFW will be considered all OFWs.

Do merchant navy personnel have to pay taxes in India?

Until now, merchant navy personnel enjoyed benefits similar to non-resident Indians and did not pay taxes in India. The notices have started pouring in after a June judgment of an income tax tribunal in Kolkata, which held that merchant navy personnel must pay taxes in India.

Do non-resident seafarers pay tax on Indian flag ships?

This will lead to payment of heavy income tax on the whole income even when the seafarer is non-resident whether on Indian or foreign flag ships,“ said an email sent by the unions to their members. Email queries to MUI and NUSI did not elicit any response till press time.

Is seafarer’s salary accrued outside India included in total income?

As per Circular No. 13/2017 issued by Central Board of Direct Taxes, salary accrued to a non-resident seafarer for services rendered outside India on a foreign ship shall not be included in the total income merely because the said salary has been credited in NRE account maintained with an Indian bank by the seafarer.

Do Indians working in Middle East have to pay tax?

Pandey said Indians working in the Middle East, as well as those in Merchant Navy, will not be taxed using the new provision. “Somebody who is a citizen of India and sitting in a tax haven and not paying taxes then he has to pay tax,” he said.