Indian seafarers, sailing aboard foreign ships outside India for more than 182 days a year, will now get income-tax exemptions.
The Union finance ministry through a circular no: 13/2017 and signed by Subhash Jangala, under secretary, the department of revenue, central board of direct taxes (CBDT), has issued a clarification regarding liability to income-tax in India for a non-resident seafarer receiving remuneration in NRE (non-resident external) account maintained with an Indian bank.
The I-T exemption has been a long pending demand of the leading merchant navy unions – the Maritime Union of India (MUI) and the National Union of Seafarers of India (NUSI).
“The latest decision by the finance minister responding to our demand, is a huge boost for over 1.3 lakh Indian seafarers, as tax-free income has always been an added attraction for Indian merchant navy workforce, which contributes nearly $40 million annually to our country’s exchequer,” said Amar Thakur, general secretary, MUI.
Interestingly, a judgment by the Kolkata I-T tribunal in August 2016 had earlier mandated Indian merchant navy workforce to pay taxes in India, which shattered the morale of Indian seafarers.
Both, MUI and NUSI jointly challenged the tribunal’s decision in August 2016 in the Calcutta High Court. MUI and NUSI had also sought Centre’s intervention in the interest of Indian seafarers through a series of meetings with CBDT chairman, the minister of state for shipping and the minister of state for finance.
