Residential status
This query is : Resolved
18 February 2014
I am a marine engineer. I am in the payrolls of foreign ship management co. I sail in foreign ship with foreign flag in foreign waters and is remunerated in dollars.My query is whether the residential status U/s 6(1) of Income Tax Act be applicable to me. Am i liable to tax for the salary received as mentioned above? Kindly advice
Yogesh Shukla
(Expert)
19 February 2014
which country does the company belongs to??
21 July 2025
Got it! Here’s a clear explanation for your situation as a marine engineer employed by a foreign ship management company:
1. Residential Status under Section 6(1) of the Income Tax Act
Your residential status depends primarily on:
The number of days you spend in India during the financial year, and
Your stay in India during the preceding 4 years.
If you stay 182 days or more in India in the financial year, you will be considered a Resident. Otherwise, you may be Non-Resident or Not Ordinarily Resident depending on other conditions.
2. Income Taxability of Salary from Foreign Ship
If you are a Resident of India as per the above test, your global income (including salary earned from foreign employer) is taxable in India.
If you are Non-Resident, then only income earned or received in India is taxable here.
If you are on a foreign ship with foreign flag, sailing mostly in foreign waters, and paid outside India, this salary may not be taxable if you qualify as Non-Resident.
3. Specific Provisions: Section 6(6)
Section 6(6) of the Income Tax Act specifically states:
A person who is an Indian citizen or person of Indian origin, and
who stays outside India and visits India only for employment on a foreign ship, will be considered Non-Resident.
So, even if you cross 182 days, but your visits to India are only for employment on a foreign ship, you will be treated as Non-Resident.
4. Summary
Condition Status Taxability of Foreign Salary
Resident (182+ days and not only on foreign ship) Resident Global income taxable
Indian citizen / PIO employed on foreign ship (visiting India only for ship employment) Non-Resident Salary from foreign ship not taxable in India
5. Recommendation
Keep track of your days spent in India.
Maintain records of your employment contract and salary payments.
Consult your tax advisor for detailed compliance and filing.
1. Residential Status under Section 6(1) of the Income Tax Act
Your residential status depends primarily on:
The number of days you spend in India during the financial year, and
Your stay in India during the preceding 4 years.
If you stay 182 days or more in India in the financial year, you will be considered a Resident. Otherwise, you may be Non-Resident or Not Ordinarily Resident depending on other conditions.
2. Income Taxability of Salary from Foreign Ship
If you are a Resident of India as per the above test, your global income (including salary earned from foreign employer) is taxable in India.
If you are Non-Resident, then only income earned or received in India is taxable here.
If you are on a foreign ship with foreign flag, sailing mostly in foreign waters, and paid outside India, this salary may not be taxable if you qualify as Non-Resident.
3. Specific Provisions: Section 6(6)
Section 6(6) of the Income Tax Act specifically states:
A person who is an Indian citizen or person of Indian origin, and
who stays outside India and visits India only for employment on a foreign ship, will be considered Non-Resident.
So, even if you cross 182 days, but your visits to India are only for employment on a foreign ship, you will be treated as Non-Resident.
4. Summary
Condition Status Taxability of Foreign Salary
Resident (182+ days and not only on foreign ship) Resident Global income taxable
Indian citizen / PIO employed on foreign ship (visiting India only for ship employment) Non-Resident Salary from foreign ship not taxable in India
5. Recommendation
Keep track of your days spent in India.
Maintain records of your employment contract and salary payments.
Consult your tax advisor for detailed compliance and filing.
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