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Tax treatment for merchant navy

Question: I am in Merchant Navy.I receive my salary in US$ from bank outside India and company(employer) which I work for is also based outside India.Is my income taxable if I do NOT complete 183 days out of India in a financial year??My understanding is that as long as income source is from outside India and employer is foreign based it is not taxable.Furthermore,it is not accrued in India.I receive my income in NRE savings account.


Answer: Since you have been out of India as a member of the crew of an Indian ship and have not completed the basic stipulation of being present in India for > 182 days in the respective financial year, you are an NRI for that financial year. You will not be taxed for any income received/accrued outside India including your NRE savings account.


Warm regards,

Expert @ TaxYogi

Published Jun 18 2010




pk aggarwal said:

I think there is some mistake in the answer. I request the expert to please read and review the answer

July 14, 2010 10:15 PM

sudeep said:

the reply doesnot answer the question....

September 3, 2010 10:15 AM

asha dsouza said:

what would u say if it was receeived in usd to his india hsbc account -remitted directly by the foreign company

January 13, 2011 6:04 AM

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