Can Sailors benefit using Presumptive Tax scheme?

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This discussion explores whether Merchant Navy officers, including Marine Engineers, can benefit from India's Presumptive Tax scheme under Section 44ADA. It clarifies that eligibility depends on the nature of income (salary vs. professional fees) and TDS deductions. Officers sailing on Indian flagged vessels receiving Form 16A may face different implications compared to those on foreign flagged vessels. The key takeaway is that claiming 44ADA is generally not possible for salary income but might be applicable for professional fees, depending on TDS provisions.

Ankur Sharma

Ankur Sharma (Querist)

08 May 2023 please advise are Merchant navy officers / marine engineer falls under the specified professionals as per India’s income tax law.

Please clarify above query considering
1. Marine Engineers sailing on Indian Flagged Vessels (as they receive form 16A from companies) and

2. Marine Engineers sailing on Foreign Flagged vessel (as they don’t receive form 16A from companies) in case they have not achieved NRI status.

For computation of Income tax under Section 44ADA

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 May 2023 1 Section 192 TDS deducted they can't claim 44ADA. In case of 194J TDS deducted they can claim 44ADA.
2 Salary received can't be claimed under 44ADA.
Professional fees received can be claimed under 44ADA. See the salary slip.

Ankur Sharma

Ankur Sharma (Querist)

08 May 2023 Thank you sir for clarifying

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 May 2023 You are welcome...
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