24-05-2017

Sailors’ income earned abroad not taxable: CBDT

ship

In a relief to sailors, the government on Tuesday said a non-resident sailor’s income for services rendered outside India on a foreign-going ship will not be taxable.

“The salary accrued to a non-resident seafarer for 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 NRE account maintained with an Indian bank by the seafarer,” an official statement said.

The statement said that after examining representations made by unions, the Central Board of Direct Taxes (CBDT) issued a circular on the matter on 11 April which was followed up with a corrigendum on 26 April.

“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,” it said, adding this led to the representations to the CBDT.

Source: PTI

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