Are seafarer subjet to income tax after direct tax code bill -2010
rk yadav
(Querist) 24 October 2012
This query is : Resolved
dear sir,
i am a marine engineer and go aboard ship outside india,
by this i stays more than 182 days outside india in one financial year and as per income tax act 1961 i achieve status of nri,,,
but now with this DIRECT TAX CODE Bill - 2010 defination of nri is changed ,
my questions are as follows
1. is Proposed Direct Tax Code Bill 2010 is passed in parliament & is it in force ???
2.with this new defination of NRI in Direct Tax Code Bill 2010 a seafarer's income whose source of income is foreign shipping company will subject ti income tax.
Thanks & Regards
Ms.Nirmala P.Rao
(Expert) 27 September 2013
Dear client,
As per IT Act 1961 -if a non resident's income arises, accrues or if he directly or indirectly receives in India such income is taxable subject to tax treaties with foreign countries and reliefs under
IT Act 1961. If it is totally it sourced and received outside India then it is not taxable in India. If you directly or indirectly receive it in India -then it would be included in your total income for income tax purposes. However Direct Tax Code bill 2010 is referred to Standing Committee of Finance in
Parliament and yet to become a law.
