Salary is taxable or not in india
This query is : Resolved
15 February 2018
My Client is an Indian Ship Crew member who is working for an Indian Shipping company(Chennai), going abroad on an Indian Ship, and his stay in India is 166 days. I would like to know whether his salary received is taxable or not ? He is receiving salary from abroad(dollar) in his Bank account in India. Please tell me whether he is resident or non-resident and if salary is credited to the bank situated in India.
is he taxable ?
if Not How File Return.
is he taxable ?
if Not How File Return.
16 February 2018
Please see section 5(2)(a) along with CBDT Circular 13/2017 dated 11.4.2017 and
Kolkatta ITAT decision in Shyam Gopal Vs. DCIT 156 DTR Trib 297.
Kolkatta ITAT decision in Shyam Gopal Vs. DCIT 156 DTR Trib 297.
16 February 2018
He is non resident his salary is not taxable in India despite the amount is credited in Indian bank account.
22 February 2018
thanks CA R Seetharaman Sir
But My second question was how to claim exemption(Under Which section)
But My second question was how to claim exemption(Under Which section)
22 July 2025
Here’s a clear answer for your query regarding the Indian ship crew member’s salary and taxability:
---
### 1. **Residential Status**
* Since the crew member’s stay in India is **166 days (less than 182 days)** during the relevant financial year, **he is a Non-Resident Indian (NRI)** for that year under Income Tax Act Section 6(1).
* As an NRI, only income received or accrued in India is taxable.
---
### 2. **Taxability of Salary Received from Abroad**
* Salary earned **for services rendered outside India** (on Indian ship abroad) is **not taxable in India**, even if credited to a bank account in India.
* This is supported by **Section 5(2)(a)** of the Income Tax Act which excludes salary income for services rendered outside India for a non-resident.
* CBDT Circular No. 13/2017 dated 11.04.2017 and **Kolkata ITAT decision in Shyam Gopal vs DCIT (156 DTR Trib 297)** also confirm this exemption.
---
### 3. **Salary Credited in Indian Bank Account**
* The place of credit of salary (Indian bank account) **does not make the salary taxable** if the service is rendered outside India and the person is NRI.
* The income is taxable only if it is accrued or received for services rendered in India.
---
### 4. **How to Claim Exemption in Income Tax Return**
* While filing Income Tax Return (ITR), disclose the **salary income but claim exemption under Section 10(6)(vi) or under the relevant section as per CBDT Circular** which excludes income earned by non-resident crew members for services outside India.
* Attach a note or declaration stating the income is exempt under section 10(6)(vi) or CBDT circular.
* File **ITR-2** as there is no business income or presumptive income.
---
### Summary
| Point | Details |
| ------------------------------ | -------------------------------------------------- |
| Residential Status | Non-Resident (stay <182 days) |
| Taxability of Salary | Not taxable if for services rendered outside India |
| Salary credited in India bank | Does not make salary taxable |
| Relevant Section for exemption | Section 10(6)(vi) or CBDT Circular 13/2017 |
| Return Filing | File ITR-2, disclose salary, claim exemption |
---
If you want, I can help draft the exemption claim wording or ITR filing notes for you. Would that help?
---
### 1. **Residential Status**
* Since the crew member’s stay in India is **166 days (less than 182 days)** during the relevant financial year, **he is a Non-Resident Indian (NRI)** for that year under Income Tax Act Section 6(1).
* As an NRI, only income received or accrued in India is taxable.
---
### 2. **Taxability of Salary Received from Abroad**
* Salary earned **for services rendered outside India** (on Indian ship abroad) is **not taxable in India**, even if credited to a bank account in India.
* This is supported by **Section 5(2)(a)** of the Income Tax Act which excludes salary income for services rendered outside India for a non-resident.
* CBDT Circular No. 13/2017 dated 11.04.2017 and **Kolkata ITAT decision in Shyam Gopal vs DCIT (156 DTR Trib 297)** also confirm this exemption.
---
### 3. **Salary Credited in Indian Bank Account**
* The place of credit of salary (Indian bank account) **does not make the salary taxable** if the service is rendered outside India and the person is NRI.
* The income is taxable only if it is accrued or received for services rendered in India.
---
### 4. **How to Claim Exemption in Income Tax Return**
* While filing Income Tax Return (ITR), disclose the **salary income but claim exemption under Section 10(6)(vi) or under the relevant section as per CBDT Circular** which excludes income earned by non-resident crew members for services outside India.
* Attach a note or declaration stating the income is exempt under section 10(6)(vi) or CBDT circular.
* File **ITR-2** as there is no business income or presumptive income.
---
### Summary
| Point | Details |
| ------------------------------ | -------------------------------------------------- |
| Residential Status | Non-Resident (stay <182 days) |
| Taxability of Salary | Not taxable if for services rendered outside India |
| Salary credited in India bank | Does not make salary taxable |
| Relevant Section for exemption | Section 10(6)(vi) or CBDT Circular 13/2017 |
| Return Filing | File ITR-2, disclose salary, claim exemption |
---
If you want, I can help draft the exemption claim wording or ITR filing notes for you. Would that help?
23 July 2025
Thank You Asha Kanta Sharma Ji
Its Late but Never the End
Its Late but Never the End
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