Income tax exemption is the biggest advantage of Seafarers job. As per present income tax laws if you complete 183 days out of India, your whole income is exempted from income tax.
But recent developments raise serious doubts if these exemptions are going to continue:
As per sources Govt. is considering to make changes in conditions to complete NRI status. Many Businessmen are misusing this window to evade tax by opening their companies outside India.
Now Govt. is considering to increase the required number of days to become an NRI from 180 to 270 days. If it happens, it will be almost impossible to complete NRI days by a seafarer.
Also, A recent judgement by Kolkata Income Tax Tribunal delivered in June 2016 held, that Merchant Navy personnel must pay Income Tax, is already haunting shippies. Although Marine unions are planning to challenge it in the court, no final decision has been made till now. If Finance Minister doesn't clear the ambiguities on this Judgement, IT notices are going to Haunt seafarers for sure.
But recent developments raise serious doubts if these exemptions are going to continue:
As per sources Govt. is considering to make changes in conditions to complete NRI status. Many Businessmen are misusing this window to evade tax by opening their companies outside India.
Now Govt. is considering to increase the required number of days to become an NRI from 180 to 270 days. If it happens, it will be almost impossible to complete NRI days by a seafarer.
Also, A recent judgement by Kolkata Income Tax Tribunal delivered in June 2016 held, that Merchant Navy personnel must pay Income Tax, is already haunting shippies. Although Marine unions are planning to challenge it in the court, no final decision has been made till now. If Finance Minister doesn't clear the ambiguities on this Judgement, IT notices are going to Haunt seafarers for sure.
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