Explained : NRI Status and Income Tax Rules for Sailors working on F.G. / Indian flag vessels

Indian sailors are entitled to complete NRI status due to nature of their job. Therefore different Income Tax laws apply to sailors compare to other Indian citizens. Following is the solution to all your Income tax related queries :

Ques . Should I file Income Tax return?
Ans   . Yes, you should file an Income tax return irrespective of your resident status. Even if you     complete NRI status you must file Income Tax Return every year.

Ques . What is NRI status ?
Ans   . If a person stays in Indian for less than 182 days ( i.e. more than 183 days outside India ) in a              financial year ( i.e. from 1st April to 31st March ) his resident status will be NRI for that            financial year.

Ques . Is my Income, tax free or I have to pay tax?
Ans   . If your complete 183 days or more on a Foreign Going ship then your income is totally tax                  free and you don't have to pay any Income tax.
           But if you fail to complete NRI status you have to pay Income tax as per Income tax rules for that Financial Year.

Ques . How my NRI days will be counted ?
Ans   . Days for the calculation of NRI days will be counted as per stamp in Passport. Counting will start from the day you leave India till you come back to India.

For crew members working on Indian Flag vessels days will be calculated as per their CDC.

Ques . How days will be calculated for Sailors working on Indian Flag Vessels ?
Ans   . As per new amendments made by Govt. from 1st April 2015 NRI days will be calculated for Indian Flag Vessels as per following :

1.   Days should be counted as per stamp date on CDC.
2.  Dates stamped should be included for counting days stayed outside India.
3.  Days will be counted only for a voyage, which originates from any port in India and has its destination at any port outside India OR which originates from any port outside India and has its destination at any port in India.
4.  If voyage originates from any Indian port and ends at Indian port then these days can't be counted for days outside India.
5. In order to get exemption from Income Tax due to NRI status, payment must be given in foreign currency and NOT in Indian Rupees.