Income Tax Refund for Merchant Navel Officer
This query is : Resolved
23 October 2010
Hello Sir,
This is Pratap S Rathore, serving on merchant ships as deck officer.
Query for Income Tax Refund
Assessment Year- 2010-11
From 01/04/2009 to 10/07/2009 I served on ship belong to SCI.
SCI, Shipping Corporation of India is an indian company.
My Gross Wages for the period were Rs. 635870/- on which company deducted
Rs. 97600/-. Please be noted that my whole wages charged under the head
Basic Salary.
Now During that period I was in foreign waters for 58 days as mentioned
in Form-16.
In SCI most of the salary is paid as cash advance onboard and rest of is settled
down after sign off.
Total Wages- 635870/-
Total Cash advance onboard 546449/-
Paid in Indian Waters 377420/-
Paid in Foreign Waters 169029/-
Wages settled after sign off 89421/-
Foreign Water Days 58
After this contract I changed my company and joined BW Maritime Pte Ltd.,
which is a foreign company, head office in oslo,norway and branch office in
mumbai.
I did my 2nd contact during previos year with this company from 14/11/2009 to
31/03/2010. During whole of that period I was outside indian waters.
my wages were paid in NRE account with HSBC in USD. They did not deduct any
tax, which is normal practice.
Foreign Water Days 138
Total Foreign water days
during previous year 196
Thus I am fulfilling the condition of NRI status u/s 6.
So i want to claim whole of 97600/- paid.
My CA is suggesting that i have status of NRI and wages of 2nd contract will not be taxed,
but sci is a indian company and wages are accrued in india, also in my case, they were paid
in india except Rs. 169029/- which were paid in baharain( Baharain Dinar 1260/-)
But when I was serving on SCI Ship, perssonel used to sail continuesly for year or more
so that they can be outside indian waters for more than 182 days and in turn saving Tax.
Now I am not able to contact any of my known in SCI on what basis they were saving tax,
also not have contact for any CA who is dealing in these matters.
So Sir, please advice what are my options, in worst case if you are not able to please
suggest other CA who can deal with this.
Thank You.
This is Pratap S Rathore, serving on merchant ships as deck officer.
Query for Income Tax Refund
Assessment Year- 2010-11
From 01/04/2009 to 10/07/2009 I served on ship belong to SCI.
SCI, Shipping Corporation of India is an indian company.
My Gross Wages for the period were Rs. 635870/- on which company deducted
Rs. 97600/-. Please be noted that my whole wages charged under the head
Basic Salary.
Now During that period I was in foreign waters for 58 days as mentioned
in Form-16.
In SCI most of the salary is paid as cash advance onboard and rest of is settled
down after sign off.
Total Wages- 635870/-
Total Cash advance onboard 546449/-
Paid in Indian Waters 377420/-
Paid in Foreign Waters 169029/-
Wages settled after sign off 89421/-
Foreign Water Days 58
After this contract I changed my company and joined BW Maritime Pte Ltd.,
which is a foreign company, head office in oslo,norway and branch office in
mumbai.
I did my 2nd contact during previos year with this company from 14/11/2009 to
31/03/2010. During whole of that period I was outside indian waters.
my wages were paid in NRE account with HSBC in USD. They did not deduct any
tax, which is normal practice.
Foreign Water Days 138
Total Foreign water days
during previous year 196
Thus I am fulfilling the condition of NRI status u/s 6.
So i want to claim whole of 97600/- paid.
My CA is suggesting that i have status of NRI and wages of 2nd contract will not be taxed,
but sci is a indian company and wages are accrued in india, also in my case, they were paid
in india except Rs. 169029/- which were paid in baharain( Baharain Dinar 1260/-)
But when I was serving on SCI Ship, perssonel used to sail continuesly for year or more
so that they can be outside indian waters for more than 182 days and in turn saving Tax.
Now I am not able to contact any of my known in SCI on what basis they were saving tax,
also not have contact for any CA who is dealing in these matters.
So Sir, please advice what are my options, in worst case if you are not able to please
suggest other CA who can deal with this.
Thank You.
25 October 2010
For further information i have just found out that if I have NRI Status then cash advance taken onboard in foreign waters is exempted.
But still under which section and on what grounds I am not able to find out.
So experts please take interest and try to resolve.
Thank you.
But still under which section and on what grounds I am not able to find out.
So experts please take interest and try to resolve.
Thank you.
31 July 2024
For the Assessment Year 2010-11, given your situation as a Merchant Navy officer with both Indian and foreign income, here's how you can address the issue of claiming a refund and understanding your tax liabilities:
### Tax Implications for Merchant Navy Officers
1. **Income Tax on Indian and Foreign Income:**
- **Income Accrued or Received in India:** As per Indian tax laws, salary received for services rendered in India is taxable in India.
- **Income Earned Outside India:** Income earned outside India may be exempt if you qualify as a Non-Resident Indian (NRI) and if the income is received or accrued outside India.
### Specifics for Your Case:
1. **Taxability of Salary from SCI:**
- **Period in Foreign Waters:** The portion of your salary earned while on foreign waters (58 days) can be exempt from tax under Section 10(6) of the Income Tax Act, provided you meet the conditions of being an NRI and the income is not received or accrued in India.
- **Cash Advance Onboard:** The cash advance taken onboard and paid in foreign waters (₹169,029) may also qualify for exemption under the same provision, but it needs to be evaluated based on your NRI status and the nature of the payment.
2. **Taxability of Salary from BW Maritime Pte Ltd.:**
- Since you were employed with a foreign company and worked entirely outside India during this period, this income is generally not taxable in India. Your NRE account payments also align with this.
### Steps to Claim Refund:
1. **File a Belated Return (if not filed):**
- File a belated return for AY 2010-11 under Section 139(4) if you have not filed it yet. This will enable you to claim the refund.
2. **Claim Exemptions:**
- In your return, ensure you claim the exemption for the foreign income as per Section 10(6) for the salary earned in foreign waters.
3. **Provide Accurate Details:**
- Mention the details of your salary, including amounts earned and paid in foreign waters, and the corresponding deductions in the return.
4. **Documentation:**
- Maintain and provide proper documentation, including:
- Form 16 from SCI.
- Proof of income earned in foreign waters.
- Details of the NRE account and payments made.
- Any relevant documents proving your NRI status.
5. **Rectification of Return (if required):**
- If you’ve already filed a return and need to correct it, file a rectification request under Section 154.
### NRI Status and Tax Exemptions:
- **NRI Status Confirmation:** Ensure that you meet the criteria for NRI status under Section 6 of the Income Tax Act. This status affects the taxability of your income.
- **Section 10(6):** This section provides exemptions for income earned abroad by individuals employed in foreign companies. Make sure to apply this correctly in your return.
### Consulting a Tax Professional:
Given the complexity of your case, including the different income sources and jurisdictions, consulting a tax professional with experience in handling tax matters for Merchant Navy officers and NRIs is advisable. They can provide personalized guidance and ensure compliance with tax laws.
### Additional Resources:
- **Income Tax Portal:** Check the official [Income Tax Department website](https://www.incometax.gov.in/) for forms and detailed procedures.
- **Tax Consultants:** Consider reaching out to tax consultants or firms specializing in international tax laws and NRI taxation.
### Summary:
1. **File a belated return** if not already done, claiming exemptions for foreign income.
2. **Apply for a refund** if excess TDS was deducted and you are eligible for a refund.
3. **Consult a tax professional** to ensure all exemptions and deductions are correctly applied.
If you need further assistance or specific recommendations for a CA, consulting local or specialized tax consultants might be beneficial.
### Tax Implications for Merchant Navy Officers
1. **Income Tax on Indian and Foreign Income:**
- **Income Accrued or Received in India:** As per Indian tax laws, salary received for services rendered in India is taxable in India.
- **Income Earned Outside India:** Income earned outside India may be exempt if you qualify as a Non-Resident Indian (NRI) and if the income is received or accrued outside India.
### Specifics for Your Case:
1. **Taxability of Salary from SCI:**
- **Period in Foreign Waters:** The portion of your salary earned while on foreign waters (58 days) can be exempt from tax under Section 10(6) of the Income Tax Act, provided you meet the conditions of being an NRI and the income is not received or accrued in India.
- **Cash Advance Onboard:** The cash advance taken onboard and paid in foreign waters (₹169,029) may also qualify for exemption under the same provision, but it needs to be evaluated based on your NRI status and the nature of the payment.
2. **Taxability of Salary from BW Maritime Pte Ltd.:**
- Since you were employed with a foreign company and worked entirely outside India during this period, this income is generally not taxable in India. Your NRE account payments also align with this.
### Steps to Claim Refund:
1. **File a Belated Return (if not filed):**
- File a belated return for AY 2010-11 under Section 139(4) if you have not filed it yet. This will enable you to claim the refund.
2. **Claim Exemptions:**
- In your return, ensure you claim the exemption for the foreign income as per Section 10(6) for the salary earned in foreign waters.
3. **Provide Accurate Details:**
- Mention the details of your salary, including amounts earned and paid in foreign waters, and the corresponding deductions in the return.
4. **Documentation:**
- Maintain and provide proper documentation, including:
- Form 16 from SCI.
- Proof of income earned in foreign waters.
- Details of the NRE account and payments made.
- Any relevant documents proving your NRI status.
5. **Rectification of Return (if required):**
- If you’ve already filed a return and need to correct it, file a rectification request under Section 154.
### NRI Status and Tax Exemptions:
- **NRI Status Confirmation:** Ensure that you meet the criteria for NRI status under Section 6 of the Income Tax Act. This status affects the taxability of your income.
- **Section 10(6):** This section provides exemptions for income earned abroad by individuals employed in foreign companies. Make sure to apply this correctly in your return.
### Consulting a Tax Professional:
Given the complexity of your case, including the different income sources and jurisdictions, consulting a tax professional with experience in handling tax matters for Merchant Navy officers and NRIs is advisable. They can provide personalized guidance and ensure compliance with tax laws.
### Additional Resources:
- **Income Tax Portal:** Check the official [Income Tax Department website](https://www.incometax.gov.in/) for forms and detailed procedures.
- **Tax Consultants:** Consider reaching out to tax consultants or firms specializing in international tax laws and NRI taxation.
### Summary:
1. **File a belated return** if not already done, claiming exemptions for foreign income.
2. **Apply for a refund** if excess TDS was deducted and you are eligible for a refund.
3. **Consult a tax professional** to ensure all exemptions and deductions are correctly applied.
If you need further assistance or specific recommendations for a CA, consulting local or specialized tax consultants might be beneficial.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Transfer of MF
- Two pancard
- Query Regarding Income Tax Rate on Gain from Transfer of Partnership Stake (LLP Partner)
- Can we claim ITC in 28%
- E bike purchase can get input in GST
- Regarding E-invoice Generation
- Eligibility for filling NEW Form 121 from April 2026
- Lifting and cross charges
- SSY for 2 daughters
- ADDITIONAL PLACE OF BUSINESS DOCUMENTS
- Spice form, ? mark comes in address
- Tds on GST in connection with sale to public company
- B2B Amendment
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
