The biggest advantage of seafarers profession in India is exemption from income tax. If one completes NRI days in a financial year that is if he stays outside India on ship for more than 182 days then he doesn't have to pay Income Tax in India.
From last many years seafarers of India have this apprehension that this exemption can be lifted anytime.
Previously Narendra Modi government provided a big relief to Indian Seafarers sailing on ships which are playing in Indian waters. Then finance minister Arun Jaitley made it clear that the counting of NRI days will be done according to the entries in CDC for the seafarers working on coastal ships.
On 5th July 2019 as Finance Minister Nirmala sitharaman tabled Union budget 2019 in the parliament, all Eyes of seafarers community were on the changes made in the NRI status requirement. Union budget 2019 neither brought good news nor bad news for the Indian seafarers.
Finance minister Nirmala sitharaman did not touch the clause of NRI days and made no changes to it.
In budget 2019 also there are no changes in the NRI days to be maintained by Indian seafarers in order to get income tax exemption.
To get income tax exemption Indian seafarer has to maintain following things:
1. Seafarer has to stay on ship for more than 183 days in a financial year.
2. The salary received by the seafarer should be in foreign currency and same should be received in his NRI account.
3. If the ship sails in Indian waters then the NRI days will be counted according to the entries in CDC. If the ship touches any foreign port during the Voyage then the full voyage will be counted as NRI days even if the ship has sailed in Indian waters.
The biggest advantage of maintaining NRI account is that the interest earned from the fixed deposits or other Investments like mutual funds and equity shares does not attract any income tax and is totally tax free. Indian seafarers are suggested to maintain their NRI account and make all the Investments via their NRI account onl
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