I have maintained my non-resident status from last 4 years but never filed ITR. From the drop-down menu, choose either Income Tax or Wealth Tax. As per this amendment, an Indian origin seafarer, who has Indian income exceeding fifteen lakh during the financial year and is in India for more than 120 days but less than 181 days, shall be considered as a Resident in India. Also Read: NRI Status for Financial Year 2020-21: New Circulars. Submission of ITR - Filing (E-Filing) of Income Tax Return 4. A Seafarer does not pay tax or file ITR anywhere in world. However, the return can be filed up to 30th June 2020 with penalty. Company failed to appoint a woman director MCA imposes Penalty, Company failed to circulate annual audited financial statements MCA imposes penalty, Violation of Section 134(2), 134(3) & 134(7) of Companies Act, 2013 MCA imposes Penalty, Company failed to circulate proper notice to AGM- MCA Imposes Penalty, MCA imposes penalty for delay in filing resolution in e-form MGT-14, Company failed to dematerialize shares before transferring MCA imposes Peanlty, Company fails to file declaration for commencement of business MCA imposes penalty, MCA imposes penalty on company for failure to include its CIN on its letterhead, Latest GST Ready Reckoner 2023 by CA Raman Singla Released, Summary of IND AS 110 and IFRS 10 Consolidated Financial Statements, Income Tax Calculation for Senior Citizens: Comprehensive Guide, Non appointment of CS- Penalty reduced from Rs. Not Taxable, but you can claim refund by filing income tax return in India. What are the Permissible credits in an NRO account? ITR will be helpful in case you have some income on which TDS has been deducted. Whether the salary received shall be taxable in India? Seafarers hold a variety of ranks and professions, each of the crew members executes unique responsibilities. Member Strength
Income Tax \u0026 Return playlist - https://www.youtube.com/playlist?list=PLl2f6u7MFhh0KWihG62iuiwzbHA-zR1siCircular - https://www.incometaxindia.gov.in/communications/circular/circular132017.pdf00:00 Intro01:53 Residential Status in India Why you need to know?02:21 Type of Residential Status in India (Seafarer)05:52 Conditions / Rules (Income Tax Act - Section 6)06:05 Income Tax Act - Section 6 Government of India website extract07:07 Seafarer/Member of Crew of Indian Ship Existing Provision09:46 Non-resident seafarer - Receiving remuneration in NRE account11:02 Scenarios / Cases With Examples13:26 Which ITR Form you need to file?Income Tax \u0026 Return playlist - https://www.youtube.com/playlist?list=PLl2f6u7MFhh0KWihG62iuiwzbHA-zR1siCircular - https://www.incometaxindia.gov.in/communications/circular/circular132017.pdfPlease LIKE SHARE and SUBSCRIBE for more content!Hit the BELL and select - \"ALL\" to get updates. Other Channel - https://www.youtube.com/channel/UCXmPwxYmGsr3HNdzzQkenlA?sub_confirmation=1 Website - https://rishish.xyz Facebook - https://www.facebook.com/DixitRishish Telegram - https://t.me/rishish_dixit#Seafarer #IncomeTax #CrewOfIndianShip #ITR I have joined ship from India on 23rd May 2019 . (ii) for the voyage having originated from any port outside India, has as its destination any port in India. 2023 SeafarersTax.Org - All Rights Reserved. Any exemption will be as per Income Tax Law. Our team is ready to help you navigate the complexities of income tax filing and ensure that your return is filed accurately and on time. b. To clarify the applicability of this new section 6(1A), CBDT has issued a clarification via press release on 02 Feb 2020. A common deck crew for a ship includes Captain / Master, Chief Officer/ Chief mate, Second officer/ Second mate, Able seaman, Ordinary seaman, Deck cadets etc. Ask expert directly!Ask Now, Access to multiple asset classes of IndiaAvail advisory services on tax, repat and more, SBNRI Technologies Pvt Ltd India Accelerator UG Floor, MGF Metropolis Mall, Mehrauli-Gurgaon Rd, Gurugram, Haryana 122002, Copyright | 2021 @ SBNRI | All Rights Reserved, Income Tax Rules for Indian Seafarers/ Merchant Navy, NRI Quota: Eligibility | List of Colleges | Documents Required. For example, if a voyage started on 01 Dec 2019 and end on 01 May 2020 then the period outside Indian will be from 01 Dec 2019 to 31 March 2020 for the FY 2019-20 & from 01 April 2020 to 01 May 2020 for the FY 2020-21. The return can be filed up to 31st March 2021 with penalty. No mention is available whether it is applicable to the person who was unable to leave India for the purpose of employment due to lockdown. d) If you have deposited any cash in bank, then the same can be tracked by Income Tax Department (ITD) because Banks are required to share details with the ITD. Save TDS on FD Interest with Form 15G and 15H, Indian Income Tax Reflects on Online Casino Gamblers, Residential Status for Seafarers (Merchant Navy), Taxability of Salary and Other Income for Seafarers, Filing Income Tax Return (ITR) for Seafarer, Income Tax Guide 2021 (FY 20-21) for Indian Seafarer (Merchant Navy), Resident having age of 60 year or more but below 80 years, has deposited an amount of Rs 1 crore in one or more current accounts; or, has incurred expenditure exceeding Rs 2 lakh for himself or any other person for travel to a foreign country; or, has incurred expenditure exceeding of Rs 1 lakh towards consumption of electricity; or. In NRE account only foreign currency or a check from another NRE account can be deposited. Use NRE DAYS CALCULATOR to find out your resident status, Rule Applicable for Voyages Start or End in India. This means taxpayers still have time to claim valuable family tax . This circular specifically clarify if below conditions are met then the salary received will not be included in the total income of the individual. At Bambridge accountants, we offer an excellent service with the knowledge that comes second to none for US residents who require professional help with their return. Income Tax Return (ITR) for FY 2022-23 (April 2022 till March 2023) can be filed till 31st July, 2023. IN MY OPINION, IF YOU ARE A NON RESIDENT SEAFARER THEN THE SALARY RECEIVED SHALL NOT BE INCLUDED IN YOUR TAXABLE INCOME. Generally, passport dates are used when you join and sign off from ship outside India. Are you a seafarer looking to file your income tax return? I have no other income in India apart from 5000/- bank interest in rupees. What is the last date for filing income tax return? As per Circular No. As per Notification No. If he is not then he will be treated as a resident seafarer. Bypassing using the BRT, it means you are not restricted to the 35 days inside the US, as you are using the PRT (365 days minus 330 days). To qualify for FEIE using the PPT, you must have been outside the US for 330 days of any 12-month period. #itr #incometax #itr2#OFFLINEThis is my effort to make the seafarers familiar with the procedure ,how to e-file ITR-2.You should choose schedules applicable. Both the dates are mentioned in CDC. However, dates of the CDC are the conclusive evidence at the time of scrutiny that you are outside India for the purpose of employment. Seafarer generally receives remuneration in the form of salaries from the companies. As per this clarification, Section 6(1A) is an anti-abuse provision to cover those Indian citizens who shift their stay in low or no tax jurisdiction to avoid payment of tax in India. Earlier the last date to file the ITR was 31st March, 2021. For example, if the starting stamp date 01 April 2020 and ending stamp date is 30 April 2020 then the period outside India shall be 30 days. A seafarer holds vary of ranks and position on water-born vessel and helps the crew member with their allotted discrete operation. As per Section 6 of the Income Tax Act, 1961, a Seafarer shall be a Non-resident if he stays outside India for a period of 184 days or more (185 days or more in case of leap year) for the purpose of employment. Seafarerstax.org is solely for the purpose of serving the taxation needs of the Honorable Seafarers who play a vital role in upliftment of Nations Economy. At the same time, another amendment has been inserted in Section 6(6) to consider the individual covered under this explanation as a resident but not ordinarily resident which makes sure that the salary earned outside India on ship will not be taxable in India but you cannot claim non-resident status. 15 lakh. TDS on sale of property - filing of return cum challan per form, 6. To summarise, you may be eligible for FEIE and should be making the most of it if you are! As mentioned, these days can be over any 12-month period, not just the tax year. The online ITR filing is live and taxpayers have started filing their income tax returns or ITRs for the financial year 2022-23. 3.09 Lakh, CCI Lacks Jurisdiction Over ICAIs CPE Activities: Delhi HC, e-Waybill System 2 Factor Authentication, Deregistration & Common Enrollment. In NRE account only foreign currency or a cheque from another NRE account can be deposited. This provision is applicable on the person who is visiting India not for a person who is leaving India for the purpose of employment. There are no income tax exemptions for merchant mariners/ seafarers. There are various case laws which specifically suggest that the date of departure will be considered outside India. The amendment has been made in Explanation 1(b) of Section 6 of the Income Tax Act. When I make under salary it is showing as taxable. If a ship spent time in Indian territorial waters then it will be counted as period outside Indian if it is part of the eligible voyage. How do I file a seafarer tax return? Sum of all the period (which satisfies above conditions) should be used when there are multiple voyages in a single financial year. 3) I have left India on 17th May 2019, but the actual joining from Singapore as mentioned on CDC is 23rd May 2019. As per Section 139(1)(b), every individual, if his total income exceeds the maximum amount which is not chargeable to income tax shall file his return before giving any benefits of any deduction under Chapter VI-A (like LIC, medical premium, school fees etc. 70/2015/ F.No.142 /12/2015-TPL, the period beginning on the date entered into the Continuous Discharge Certificate (CDC) in respect of joining the ship by the individual for the eligible voyage and ending on the date entered into the Continuous Discharge Certificate in respect of signing off by that individual from the ship in respect of such voyage. 2023 SeafarersTax.Org - All Rights Reserved. In general terms, a Seafarer or Merchant Navy Worker is someone who works or travels on a boat or ship on the sea. 13) Whether the amendment in Budget 2020 is applicable to seafarers? Kindly note, it is mandatory to file income tax return if your income is more than INR 250,000. 2 of PD 1183 (Philippian Law), as amended: Overseas Filipino workers Filipino permanent residents abroad whose stay in the Philippines is less than one year. The salary of a non-resident seafarer will NOT be included in the total taxable income of the seafarer. For this process, select income tax. 70/2015/ F.No.142 /12/2015-TPL, How the New Tax Will Impact the Online Casinos in India. B-26, Singh Industrial Estate No. Use tab to navigate through the menu items. The amendment in Budget 2020 is not applicable to seafarers. The three-year deadline for filing 2019 returns to claim a refund was in 2022, but the IRS postponed the deadline to July 17, 2023, due to the COVID-19 pandemic. What is an Individual Retirement Account (IRA)? Returns are filed in virtual mode. Seafarers can now file their Income tax return (ITR) for the FY 2019-20 till 31st May, 2021. IR-2023-106, May 30, 2023 WASHINGTON The Internal Revenue Service today reminded American taxpayers living and working outside the U.S. to file their 2022 federal income tax return by Thursday, June 15. A Non-resident seafarer is required to file an Income tax Return when his total income before claiming any deductions (like LIC, Mediclaim etc.) a. There are no specific guidelines on your returning period and how long you can return for, but if you are spending the majority of the year within the US, it would be hard to fight the case that it is not your primary residence and thus you would most likely lose your eligibility via BRT. If an ITR is filed, it works as an important document for various purposes (including loan application, visa application etc) and also serve as a record/evidence in countering any enquiry from Income Tax Department in future. There is no specific provision of exemption or taxation under Income Tax Act for Seafarer or Merchant Navy. The salary of a resident seafarer or merchant navy personnel will be taxed as per the Indian Income Tax Law. Filing of Form 15CB for outward remittance per form, 1. Also Read: NRI Tax: Top 10 Mistakes made by NRIs while Filing ITR in India. Who qualifies? Due to a complicated tax system, understanding tax laws can be confusing and NRIs may miss claiming deductions and other benefits. !The information provided by the speaker / presenter on this platform is for the general information purpose only.All information is provided in good faith,however we make no representation or warranty of any kind, express or implied regarding the accuracy ,adequacy,validity, reliability,availability or completeness of the information. In case, if the filed return gets selected for scrutiny, you have to provide the salary slips, signed contract etc. INCOME TAX GUIDE FOR SEAFARERS - APRIL 2021, As per Section 6 of the Income Tax Act, 1961, a Seafarer shall be a Non-resident if he stays outside India for a period of. Now, a person (including Ship Worker), who is citizen of India, can be categorized as Resident in India if his stay in India exceed 119 days (i.e. We provide Income Tax Consultancy at affordable prices by developing appropriate tax strategies which meets your requirements and expectations completely. As they have to prolong their stay in India which result in genuine hardship as they may not be able to maintain their status as Non-Resident or Resident but not ordinarily resident. So other income earned by assessee like bank interest, capital gain on sales of investment or property, dividends, commission etc. The salary shall be tax-free since the seafarer becomes a non-resident as he has stayed outside India for 184 days or more (185 days or more in case of leap year). Other than this saloon staff will comprise of Chief Cook and General Stewart but the number and rank of crew members serving on a ship will vary according to the size of the vessel, trade area of the vessel, Minimum Safe Manning certificate, administration etc. Your email address will not be published. The taxability of the salary received by a seafarer or Merchant Navy are totally based on the residential status of the seafarer or Merchant Navy. However, there is no specific provision of income tax exemption for Indian seafarers. A seafarer, merchant navy worker, or mariner is a person who travels on a boat or ship on the sea. exceeds Rs 2.5 lacs. There is no specific provision of exemption or taxation under Income Tax Act for 'Seafarer' or 'Merchant Navy'. 8) I am a non-resident seafarer and I have got an advance of $5000 at the time of sign off. U.S. Seafarers can be eligible for FEIE, or Foreign Earned Income Exclusion. 35% for incomes over $215,950 or $431,900 for married couples filing jointly. However, this is not the case. How Seafarer Earns Seafarer generally receives remuneration in the form of salaries from the companies. Contact us today to learn more about our income tax return filing services for seafarers. Note: The ship income of a visiting NRI will not be included for the purpose of calculation of Rs. Hence, it is very important and beneficial for a Seafarer to file an ITR in India though it is not mandatory under the Income Tax Rules in India. Have you filed Equalization Levy annual return yet? Can I get a notice for non-filing of income tax return? This harsh rule can be a game changer in the taxability of merchant navy employees and seafarers, if they are categorized as Resident in India under the new Tax Rule of Residency. The department has notified 7 various forms i.e. 4. (ii) for the voyage having originated from any port outside India, has as its destination any port in India. fulfils such other conditions as may be prescribed. provided under section 80) shall furnish his return of income. Ans. Complete details: We'll share all login details with you, along with Computation, ITR-V, XML, and any other relevant documents. Non-resident mariners need to open an NRI account to deposit their overseas income in India. Live GST Course on GST Input Tax Credit (ITC), 10 Day Workshop on Share Market for Beginners. B-26, Singh Industrial Estate No. Taxability of Other Income. Hence, his foreign income will not be taxable in India. Join our newsletter to stay updated on Taxation and Corporate Law. Also Read: Income Tax e-filing: Top 10 NRI Income Tax Filing Benefits. Get the latest creative news from FooBar about art, design and business. Save TDS on FD Interest with Form 15G and 15H, Indian Income Tax Reflects on Online Casino Gamblers, Income Tax Guide 2021 (FY 20-21) for Indian Seafarer (Merchant Navy), Residential Status for Seafarers (Merchant Navy), Filing Income Tax Return (ITR) for Seafarer, Taxability of Salary and Other Income for Seafarers. QUESTIONS (FAQ's) 01. How Does Seafarer Earn Income Generally, a seafarer earns income under a contract of employment or otherwise, where the shipping company pays the seafarer on the basis of terms of the contract. Rule Applicable for Voyages Start and End outside India. I am Practicing Chartered Accountant from Jaipur and in practice for more than 9 years. Last year's Day of the Seafarer celebrated seafarers and recognized the unique contribution made by seafarers from all over the world to international seaborne trade, the world economy, and civil society as a whole, with the theme 'Seafarers Matter'. In addition to our comprehensive income tax return filing services, we offer the following: PAN registration: We can register your PAN card on the e-Filing website if you're not already registered. LIVE GST Certification Course by CA Arun Chhajer begins 26th May. 1. Income tax for resident seafarer The salary of a resident seafarer or merchant navy personnel will be taxed as per the Indian Income Tax Law. Many seafarers amidst the chaos of crew change were not able to file their ITR and ended up disappointed. I am Practicing Chartered Accountant from Jaipur and in practice for more than 9 years. A similar circular will also be released for the financial year 20-21 as mentioned by the Income Tax Department in their tweet of 08th May 2020 depending on the normalization of/resumption of international flights. It is advisable to file Income Tax Returns (ITR) even if you are Non-Resident Indian (NRI). For example, if there are 2 voyages for a period of 100 days and 90 days during FY 2019-20 then the period outside India will be 190 Days. No special exemption is available. A sailor, seaman, mariner or a seafarer is a person who navigates water bone vessels or assists as a crew member in their operation and maintenance. Here it is important to note that for the purposes of calculation of Rs 15 Lakh, their ship income will not be included. Income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable, to the income tax department. 2.5 lacs, then you will be required to file return of income an there are chances that you will get a notice for non-filing of return of income. Filing Income Tax Return (ITR) is an important financial obligation for individuals and entities to report their income and pay taxes to the government. Sachet Agarwal who is Partner - International Taxation, Audit & Assurance of VRAC, having wide experience of filing IT Return for seafarers. All-inclusive: We cover all types of income, including Salary, Capital Gain, Business, Retirement Benefits, Multiple Employer, and Non-Residents. Rules applicable for voyages start and end outside India. are taxable and required to be reported at the time of filing your return of income. Is it under scheduled FSI or Scheduled FA or income from salary? Also, a false news is circulated in various places that a seafarer is required to complete 8 months onboard to save tax on their merchant navy receipt which is not correct. Address. Another new Section 6(1A) has been inserted by Financial Act 2020 which is applicable beginning from the financial year 2020-21 (01st April 2020 to 31st March 2021). October 13, 2021 Income Tax A seafarer - is any traveler via seas, classifying their work based on the rank or type of job as merchant navy, navy worker or mariner in a boat or ship. 2) I have joined ship from India on 23rd May 2019 and the signing-off is in the USA on 26th January 2019. I have completed my non-resident status. 10) I am unable to complete my non-resident status for the financial year 2019-20. COVID 19 Updates A video cutting is going viral in Merchant Navy groups that the 184 days condition has been relaxed for the FY 2019-20 due to Coronavirus which is not correct. MEANING OF SEAFARER OR MERCHANT NAVY Firstly, there is no such term as 'Seafarer' or 'Merchant Navy' under the Income Tax Act, 1961 ('Act'). Yes, if you are outside India for more than 184 days (or 185 days in a leap year) as per your CDC/passport then you are considered Non-Resident India under Income Tax Act 1961. Overseas salary of a non-resident seafarer/ Merchant Navy staff shall not be taxed in India. It is advisable to file Income Tax Returns (ITR) even if you are Non-Resident Indian (NRI). All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site. Read on to know when salaried can file their returns and the due date. Also, a return is required to file by the seafarer, if he has: a) Deposited amount of 1 crore in current accounts b) Incurred expenditure of more than 2 lakhs in any foreign country Which income tax return form should be filed for financial year 2019-20? Things Covered All Incomes We cover all types of income whether it is Salary, Capital Gain, Business, Retirement Benefits, Multiple Employer, Non- Resident etc. In case, if the filed return get selected for scrutiny, you have to provide the salary slips, signed contract etc. If you are planning to purchase a property it is mandatory to provide your PAN card for registry. If you feel you are eligible but have already filed multiple returns for previous years, there is no need to worry as you can claim FEIE for the previous years you were eligible. Any other income which accrues or arise in India is taxable here in India under section 5 (2) (b). 4) If there is shortfall of 10 days in maintaining his Non-Resident Status, then can I go out for a vacation to fulfill the Non-resident status. 18 August 2019 1 Fill passport number country of issue as jurisdiction. 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Timely submission: We'll submit your income tax return within 5 days of receiving all necessary details. So, once you have this residence, you could spend multiple months back inside the US, as long as you intend to keep your residence outside the US. Income Tax Return (ITR) for FY 2022-23 (April 2022 till March 2023) can be filed till 31st July, 2023. In that scenario, it is compulsory to file the return of income if you have a total income exceeding Rs 2,50,000. NOTE - You may get answer to free queries within 30 working days, GST Return Filing Software for Online Sellers, GST Payment and Input Tax Credit Calculator, TDS Return Due Date & Penalty Calculator, Depreciation Calculator As Per Income Tax Act, Depreciation Calculator Companies Act 2013, HRA Calculator Monthly & Yearly Calculations, Average Monthly/Quarterly Balance Calculator, How the New Tax Will Impact the Online Casinos in India. However, it does not mean if you have received a salary from an Indian flagship then it is taxable as above circular is silent in this case. The period outside India shall be from 23rd May 2019 to 26th January 2019 ie CDC dates. As per Notification No 70/2015/ F.No.142 /12/2015-TPL, the date of period outside India shall be calculated from 23rd May 2019 to 25th Dec 2019 and not from 17th May 2019 since the sign on is from Singapore and sign off is in India. However, dates of the CDC are the conclusive evidence at the time of scrutiny that you are outside India for the purpose of employment. #IncometaxforseafarersinIndia #alliancetaxexperts #taxconsultant #incometax #onlineincometax #taxprofessional #Seafarersincometax #NRIdaysforseafarers2022 #HowtofileIncometaxreturnforseafarers #Merchantnavytaxation #canearme. Income Tax Return (ITR) for FY 2022-23 (April 2022 till March 2023) can be filed till 31st July, 2023. Can I file my income tax return for financial year 2019-20 before 31. so while filing its ,my income from merchant navy salary comes under which section? This exemption is meant for U.S. nationals who live and work overseas and gives eligible workers the opportunity to file for 100% tax relief on the first $107,600 in the 2020 year, this figure increases each year to account for inflation. Copyright TaxGuru. So, the new section does not impact taxability of salary receipt by sea fearers and they will enjoy the benefit of tax-free salary as they have currently even they become resident but not ordinarily resident as per new Section 6(1A). Some people are capable of filing their own returns, but if you do not feel comfortable, it is recommended that you enlist the help of a professional. Filing return of income is also mandatory, if you: , Maximum amount which is not chargeable to tax is as follows for the financial year 2019-20 and 20-21, Yes, you should file your income tax return even if the income is not chargeable to tax. It can be complicated to navigate the various tax exemptions, deductions, and regulations that apply to your unique situation. Previous 1, Ram Mandir Road, Goregaon West, Mumbai India - 400104. As per this new section, an individual, being a citizen of India, having a total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year shall be deemed to be resident in India in that previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature (irrespective of the number of days in India)At the same time, another amendment has been inserted in Section 6(6) to consider the individual covered under above section 6(1A) as a resident but not ordinarily resident. ITR filing forms: Choosing the correct ITR form is crucial while filing the Income Tax Return. The most common is interest on NRO bank balance, purchase of car exceeding Rs 10 lakh, starting from FY 20-21 TDS will be deducted on dividend income received from Mutual funds, public companies etc. Q.1 Are Indian seafarers liable to pay taxes? As a new seafarer or someone who has come from a completely different industry, it may be odd at first, being paid without a tax deduction on your income. Subscribe to our weekly newsletter and get updates in your email. Infants (2 years and below) Foreign diplomatic representatives in the Philippines Income tax rules for Indian seafarers will depend on their residential status. June 25, 2020, is the Day of the Seafarer, an annual and international event day coordinated by the International Maritime Organisation (IMO). NOTE - You may get answer to free queries within 30 working days, GST Return Filing Software for Online Sellers, GST Payment and Input Tax Credit Calculator, TDS Return Due Date & Penalty Calculator, Depreciation Calculator As Per Income Tax Act, Depreciation Calculator Companies Act 2013, HRA Calculator Monthly & Yearly Calculations, Average Monthly/Quarterly Balance Calculator. They can have NRE/NRO account in any Public Sector Banks or private banks. When you join and sign off from a ship outside India, passport dates are used for the calculation. Step 1: Calculation of Income and Tax Step 2: Tax Deducted at Source (TDS) Certificates and Form 26AS Step 3: Choose the right Income Tax Form Step 4: Download ITR utility from Income Tax Portal Step 5: Fill in your details in the Downloaded File Step 6: Validate the Information Entered Step 7: Convert the file to XML Format INCOME TAX RETURN FILING SERVICE FOR SEAFARER EMPLOYEES. C. NEW DEEMED RESIDENT PROVISION FROM FINANCIAL YEAR 2020-21. However, if you are filing returns in every year then the government will have complete records of return and can check that you are non-resident in most of the years and does not require to pay tax in India. Note It is mentioned in the circular that is applicable for the person visiting India. The new provision is not intended to cover those Indian citizens who are bonafide workers in other countries like in the Middle East as they are not liable to tax in these countries. If a crew member of a ship works outside India for 183 days or more during the financial year as per his/ her CDS (Continuous Discharge Certificate) or passport, his/ her residential status changes to a Non-Resident Seafarer. Non filing of ITR and non-payment of tax shall attract huge penalty . What is the definition of NRI as per Income Tax. No spam, Only relevant mails. The salary of a Non-Resident seafarer won't be included in the total taxable income of the seafarer. Eligible voyage is a voyage undertaken by a ship carrying passengers or freight in international traffic where: either the port of origin or the port destination of a voyage is in India. 12) Whether the income tax return for FY 2018-19 can still be filed? If they are outside India for more than 184 days (or 185 days in a leap year) as per your CDC/passport then they are not required to pay taxes on their merchant navy receipts. Manage Your Bajaj Finserv EMI Network Card Online at Home! 3. The following Filipino citizens are exempted from the payment of travel tax according to Sec. Futures & Options (F&O) & Intra-Day transactions, Address. 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Notification No. 2.5 lacs, then also, it is advised to file return of income because of following reasons: c) To purchase property because it is mandatory to submit PAN while purchasing and therefore the Income tax Department can track the same. If he is not then he will be treated as a resident seafarer. I am unable to complete my non-resident status for the financial year 2019-20. Generally, passport dates are used when you join and sign off from ship outside India. Ans. The period outside India shall be calculated from 17th May 2019 to 25th Dec 2019 since the sign on is from Singapore and sign off is at USA. Salary for the month of March shall be taxable in which financial year? 32% for incomes over $170,050 or $340,100 for married couples filing jointly. An NRE account can be used to park the foreign income of an NRI. 1) I have stayed outside India for a period of 210 days. Income tax for non-resident seafarer However, there is no specific provision of income tax exemption for Indian seafarers. The first of the two tests, the PPT, is judged on how many days have been spent in or outside the US in the year. The above circular is just a clarification issue by CBDT for a specific condition. I writes mainly for GST and Finance. Moreover, it is clarified that in case of an Indian citizen who becomes deemed resident of India under the section 6(1A), the income earned outside India by him shall not be taxed in India unless it is derived from an Indian business or profession. Let's into the topic of how you can verify your Form-16 online. Rule Applicable for Voyages Start and End Outside India. Steps to File Income Tax Returns (ITR) in India 1. But if your income is less than Rs. Salary received by Non-Resident seafarers in his NRE account for services rendered outside India on a ship is exempt from tax. Stamping dates in the passport are considered for the calculation of the period outside India. 1. I have been sailing for the last 5 years and never filed a return. Firstly, there is no such term as Seafarer or Merchant Navy under the Income Tax Act, 1961 (Act). ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Firstly, there is no such term as 'Seafarer' or 'Merchant Navy' under the Income Tax Act, 1961 ('Act'). Income Tax Return: Filing ITR for FY 2022-23? Visit our blog and YouTube Channel for more details. 1 Fill passport number country of issue as jurisdiction. U.S. Seafarers can be eligible for FEIE, or Foreign Earned Income Exclusion. However when you join or sign off from India then the CDC dates shall be used for calculation of period outside India. Both the stamping date (starting and ending) will be considered as date outside India. Seafarer holds a variety of ranks and professions, each of which carries unique responsibilities which are integral to the successful operation of an ocean-going vessel. However when you join or sign off from India then the CDC dates shall be used for calculation of period outside India. Various representation has been received that various individual who had come to visit India during the previous year 2019-20, were not able to leave India due to the outbreak of COVID-19 and declaration of lockdown. So, its best if you have clear 185 days or more in your CDC. . An amendment has been made by Financial Act 2020 which is applicable beginning from the financial year 2020-21 (01st April 2020 to 31st March 2021). Sometime seafarers are not able to complete the sea time period for claiming NR status. As per the Income Tax Rules, it is not mandatory for a seafarer to file ITR in India. 24% for incomes over $89,075 or $178,150 . Hence, it is very important and beneficial for a Seafarer to file an ITR in India though it is not mandatory under the Income Tax Rules in India. A common engine crew will include Chief Engineer, 2nd Engineer, 3rd Engineer, 4th Engineer (optional), Engine Cadet, Fitter, Motorman, Oiler etc. An individual is said to be Non-Resident Seafarer if he is outside India for 183 days or more during the financial year (184 days or more in case of a leap year) for the purpose of employment. INCOME TAX ON SEAFARER FOR FINANCIAL YEAR 2020-21. Hence, NRI ship workers (Seafarers) are still eligible to be determined as per 182 days Residency rule and 120 days rule will not apply on them. ITR will be helpful in case you want to apply for housing loans, purchasing life insurance, visa for a country etc. However, NRO is a saving account for non-resident in which you can deposit Indian currency or any cheque from normal saving account. Seafarer navigates a sea vessel or assist as a crew member in the operation and/or maintenance of Ship as part of his contractual employment. OUR SERVICES 15 lakh during a financial year. 6) Whether Salary received by Non-Resident seafarer in NRO account is exempt from tax? But it is advisable to receive the salary in NRE account to avoid litigations. 70/2015/ F.No.142 /12/2015-TPL, the period beginning on the date entered into the CDC in respect of joining the ship by the individual for the eligible voyage and ending on the date entered into the CDC in respect of signing off by that individual from the ship in respect of such voyage should be considered as period outside India. Navigate to the Services section and select Rectification. A Seafarer does not pay tax or file ITR anywhere in world. We are serving Seafarers Income Tax needs PAN India. Manage Your Bajaj Finserv EMI Network Card Online at Home! Hence, it is very important and beneficial for a Seafarer to file an ITR in India . Want writer of this Article to file your IT Return? RESIDENT SEAFARER It can be filed before 30th June 2020 by paying penalty. 7) I have completed non-resident status but TDS is deducted on the salary received. 15 lakh and his stay in India exceeds 119 days during a financial year, and he is categorized as a resident in India, as per the new NOR rules, he will be categorized an NOR (Not Ordinary Resident). The income tax department has enabled online forms for ITR-1, ITR-2, and ITR-4, among others, with pre-filled data. You should deposit that amount in NRE account. A new Section 6(1A) has been inserted by Financial Act 2020 which is applicable beginning from the financial year 2020-21 (01st April 2020 to 31st March 2021). However, prior to that, let's highlight some significant points. Income Tax on Seafarer for FY 2020-21 The taxability of salary received by a seafarer is based on the residential status of the seafarer. Special Circular Issued by CBDT for Non-Resident Seafarer. IS IT MANDATORY TO FILE INCOME TAX RETURN IN INDIA. You can also click on the button below to ask any questions. Here are some key benefits of working with us: Experienced Tax Experts team: Your income tax return will be prepared and filed by our in-house team of experienced Tax Experts. You can find some of the best Bank Accounts for Seafarers/ Merchant Navy Professionals. I have stayed outside India for a period of 210 days. The plain reading of this section suggests that all the non-resident sea fearers are considered as resident Indians and their salary will be liable to tax as they are not paying tax in any other country. All Rights Reserved. The period of the voyage should be calculated considering the financial year. There are two possibilities. If you find yourself in this situation, eagerly anticipating the document to expedite your income tax return filing process, this article is here to lend a helping hand. I am unable to complete my non-resident status during the financial year 2019-20. No, it has to be only for the purpose of employment and not for vacation. Generally, this payment to seafarer happens to his Indian NRE Bank Account in foreign currency. Seafarer can open an NRE/ NRO account in any public sector or private bank. For information on how we handle your data please review our privacy policy. If a seafarer stays outside India for 183 days or more during the financial year as per his/ her CDS (Continuous Discharge Certificate) or passport, his/ her residential status changes to a Non-Resident Indian under the Income Tax Act 1961. The Seafarer generally receives remuneration in the form of salaries from the Employer companies. Income Tax Return 2022-23: In less than 15 minutes, Surabhi Marwah spells out basic important concepts with regards to income tax filing in simple terms. At SBNRI, we understand this struggle. On the Rectification page, click on New Request. When you join or sign off from India, the CDC dates are used for the calculation of a period outside India. Important tips - Form 16, AIS, 26AS, ITR Forms explained - watch video. The return shall be filed on or before 31st July 2020 but after 1st April 2020. #itr #incometax #itr2#OFFLINEThis is my effort to make the seafarers familiar with the procedure ,how to e-file ITR-2.You should choose schedules applicable to you \u0026 fill them accordingly.Hope this video will help you all.Kindly share and spread ! The salary received by a resident seafarer will be taxable as per the laws of the Income-tax department. NRO account, on the other hand, is used to deposit the Indian income of an NRI. What if I can take most of my salary as cash on the ship rather than sending it my bank account to save tax, You are required to report your total salary as income rather than the amount transferred into your bank account against salary. I am working in ship if I am out of india for 185 days should I file return. If you are outside India for more than 184 days (or 185 days in a leap year) as per your CDC/passport then you are not required to pay taxes on your merchant navy receipts. 1, Ram Mandir Road, Goregaon West, Mumbai India - 400104. However, if the 12 months fall outside the tax year, the exclusion will be proportioned between the 2 years, depending on how many months you are claiming for are in each tax year For example, if the 12-month period you use is March 2018 to March 2019, 9/12 of the exclusion will be used in 2018 and the remaining 3/12 will be used for 2019. Income Tax & Return playlist - https://www.youtube.com/playlist?list=PLl2f6u7MFhh0KWihG62iuiwzbHA-zR1siCircular - https://www.incometaxindia.gov.in/communica. sailing or other income by 31st of July, 2021, unless the date is extended by Central Board of Direct Taxes (CBDT). Shall I declare the receipt as Salary or income from profession under section 44ADA? We will submit your income tax return within a period of 5 days from the date of submission of all details. No special exemption is available. Q.4 What is the difference between NRO and NRE account? Accurate NRI Days Calculation for one financial year, 1. Eligible voyage shall mean a voyage undertaken by a ship engaged in the carriage of passengers or freight in international traffic where-, (i) for the voyage having originated from any port in India, has as its destination any, (ii) for the voyage having originated from any port outside India, has as its destination. Extended filing deadline for 2019 tax refunds. Download free e-book on income tax applicability on seafarer for the FY 2019-20 along with the new changes made for FY 20-21 for free. Download free e-book on income tax applicability on seafarer for the FY 2019-20 along with the new changes made for FY 20-21 for free. I have spent 230 days in ship and have IT free income right?? b) The sign off is in USA on 25th Dec 2019 as mentioned in CDC. Rules applicable for voyages starting or ending in India. In order to be eligible for FEIE, you must meet one of the following; Both tests are made with the intention to determine whether you stay outside of the US is sufficient enough to warrant this exemption. The same is not taxable since it is a part of salary. What is Taxation of Seafarer or Merchant Navy Worker? This creates a gap in the system of income tax department as you are filing the return and paying tax in a couple of years and not filing return in other years which raise the alarm in the Government system and may receive a notice for return filing. Whether the salary received shall be taxable in India? Our team of experienced tax professionals can provide you with hassle-free income tax return filing services tailored specifically to your needs. The period outside India shall be calculated from 23rd May 2019 to 20th Dec 2019 and not from 23rd May 2019 to 30th December 2019 since the 10 days are for vacation and not for employment. Circular specifically clarify if below conditions are met then the salary received shall be taxable in India and have. 210 days for claiming NR status open an NRI no income tax for. Seafarers are not able to complete my non-resident status during the financial year 2019-20 and helps the members... 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Housing loans, purchasing life insurance, visa for a period outside India ITR forms -., ITR-2, ITR-3, ITR-4, among others, how to file itr for seafarers pre-filled data need to open an NRO... 12 ) Whether the income tax applicability on seafarer for the FY 2019-20 along with the New changes made FY! Us today to learn more about our income tax Returns ( ITR ) in India u.s. seafarers now! I have joined ship from India then the salary received shall be taxable in you... The financial year 2022-23 part of his contractual employment Explanation 1 ( b ) of income tax return India... Per form, 6 and how to file itr for seafarers due date Goregaon West, Mumbai -... Ais, 26AS, ITR forms explained - watch video over $ 170,050 or $ 431,900 for married filing... The ITR was 31st March 2021 with penalty and get updates in email! Or mariner is a person who is visiting India not for a condition. When there are various case laws which specifically suggest that the date of departure be. 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Seafarer to file income tax E-Filing: Top 10 Mistakes made by NRIs while filing the tax. ) should be calculated considering the financial year 2019-20 the ship income will be! How we handle your data please review our privacy policy which accrues or in! Be helpful in case you have to provide the salary received by a seafarer looking to file the was... Seafarer happens to his Indian NRE bank account in any Public Sector or private bank park the foreign will... Experience of filing your return of income who travels on a boat or on. Your income tax filing benefits the difference between NRO and NRE account to avoid litigations System 2 Factor Authentication Deregistration. Conditions ) should be making the most of it if you have to provide your PAN Card for registry has... Assist as a resident seafarer then the CDC dates are used for the of!, not just the tax year on 26th January 2019 or scheduled FA or income from under... From a ship is exempt from tax India - 400104 that apply to your needs Taxation of or! The Income-tax department to seafarer happens to his Indian NRE bank account in any Public Sector or! Resident provision from financial year 2022-23 has to be only for the FY 2019-20 till 31st 2020! Gst Input tax Credit ( ITC ), 10 Day Workshop on Share Market for Beginners Road, Goregaon,... Foreign income of an NRI account to avoid litigations return in India 1 any! Online forms for itr-1, ITR-2, and regulations that apply to your situation... West, Mumbai India - 400104 International Taxation, Audit & Assurance VRAC... Have got an advance of $ 5000 at the time of filing return... For vacation still have time to claim valuable family tax not applicable seafarers. E-Filing: Top 10 Mistakes made by NRIs while filing ITR for FY 20-21 for free his employment... Tds on sale of property - filing of form 15CB for outward remittance per form, 1 an NRO in! Bank Accounts for Seafarers/ Merchant Navy Worker, or mariner is a person who travels on a ship India... New Request right? your needs US for 330 days of receiving all necessary details Indian income tax for in. Included for the financial year get selected for scrutiny, you have to provide the received., 2023 if I am unable to complete my non-resident status for the month of shall... & Options ( F & O ) & Intra-Day transactions, Address USA 26th! The sea more about our income tax return in India contact US today to more. Payment of travel tax according to Sec # taxconsultant # incometax # onlineincometax # taxprofessional Seafarersincometax. Included for the month of March shall be taxable in which you can find some of voyage... Before 31st July, 2023 individual Retirement account ( IRA ) 3.09 Lakh, CCI Lacks over! Return cum challan per form, 1 questions ( FAQ & # x27 ; t be included voyage having from!, ITR-6 & amp ; return playlist - https: //www.incometaxindia.gov.in/communica not,! Cdc dates are used for calculation of Rs non-resident seafarers in his NRE account for services outside... And non-payment of tax shall attract huge penalty to apply for housing loans purchasing. Visit our blog and YouTube Channel for more than 9 years West, India! Want writer of this Article to file income tax return ( ITR ) even if you have provide... Your income tax return if your income tax Returns ( ITR ) in India 1 when there are multiple in. Pan India and Corporate Law India shall be used to deposit their overseas income in India apart 5000/-!
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