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Filing of return on case of ship crew member

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Nikita Rane

42 Points Posted on 05 January 2021

Hiii...
I have a client who is a ship crew member.
So In that case for purpose of residential status we need to exclude the number of days mentioned in the continuous discharge certificate. On calculation, my client was only for 160 days in India in previous year. so accordingly she is not taxable.
I need clarification on this....
because while filing her Itr-2 it is coming taxable..

Replies (2)

Quick Summary

This discussion concerns the tax residency status of a ship crew member client. The user needs clarification on calculating Indian residency for tax purposes, specifically regarding the exclusion of days spent at sea as per the Continuous Discharge Certificate (CDC). Despite the client being in India for only 60 days, which should qualify them as a non-resident, the IT R-2 filing indicates they are taxable. The user seeks guidance on applying the specific provisions for seafarers, including how to count days outside India and the conditions for non-resident status.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 05 January 2021

As per the existing provision, it meant that any seafarer who is an Indian citizen leaves India in any year as a crew member of ship shall be considered as Non Resident if his stay in India is less than 182 days in the current year or in the last four years, the stay is less than 365 days in total.

As per Notification, for counting the number of days outside India, if the ship is moving from Indian Port to any Port outside India or vice versa, then the number days outside India shall be counted from the sign on date entered in Continuous Discharge Certificate (CDC) of the seafarer till the date of sign off entered in the CDC.

Also, when a seafarer is coming to India for spending time with family time after sailing, then also he has to stay in India for less than 182 days in order to qualify as Non-Resident