The non-resident seafarers working on the foreign going ships (Indian or foreign flag) can receive their wages/salary directly into their NRE account maintained in India without the same being subjected to Income-Tax. File photo for representation.
The Government of India has now provided a major tax relief to the non-resident seafarers working on the foreign-going ships.
As per the circular no 13 of 2017, the Central Board of Direct Taxes, Ministry of Finance clarified that the salary accrued to a non-resident seafarer for the services rendered outside India on a foreign-going ship (with Indian or foreign flag) "shall not be included in the total income merely because the said salary has been credited in the Non-Resident External (NRE) account maintained with an Indian bank by the seafarer."
In the recent past, the income-tax tribunals had ruled that the income of non–resident seafarers, which is directly received into their NRE account maintained in India shall be taxable. Following the same, the Seafarers associations/Unions had represented to the Government of India requesting for a clarification in the matter.
With the above clarification, the non-resident seafarers working on the foreign going ships (Indian or foreign flag) can receive their wages/salary directly into their NRE account maintained in India without the same being subjected to Income-Tax.
Friday prayers in sign language at Kerala mosque for hearing impaired