Seafarer Income Tax · Panaji, Goa
Serving on a foreign ship and unsure about Indian taxes? Seafarer taxation is one of the most misunderstood areas of Indian income tax. Our Chartered Accountants in Goa specialise in merchant navy tax compliance — precise NRI status determination based on sea days, Section 10(6)(viii) salary exemption, FEMA NRE account rules and correct ITR filing for mariners.
Overview
For merchant navy officers and crew serving on foreign ships, the Indian income tax position hinges on a single question: are you an NRI for the relevant financial year? Under the Income Tax Act, an Indian citizen who is a crew member of a foreign ship is treated as a Non-Resident only if they spend 182 days or more outside India in the financial year. If NRI, their salary from the foreign ship is not taxable in India. If they fall short of 182 days — even by one day — they may be taxed as a Resident on their entire salary. Counting sea days accurately using Continuous Discharge Certificate (CDC) records is the foundation of the entire tax position.
This service connects directly with our residential status under the IT Act 1961 and ITR filing for seafarers guidance for a complete NRI compliance picture.
What's covered
End-to-end guidance and filing for your specific situation.
Get a fixed-fee quote →Precisely counting sea days from CDC records and port logs to determine whether the seafarer qualifies as NRI for the year.
Advising on the salary exemption for NRI seafarers on foreign ships — and when it applies vs when regular NRI income rules govern.
Preparing and filing the correct income tax return for seafarers — NRI and Resident years handled differently and accurately.
Advising on using NRE accounts to receive salary and remit to India tax-free, and FEMA compliance for seafarer accounts.
Recovering excess TDS deducted on Indian income (rent, interest, capital gains) for seafarers whose total Indian income is below the taxable threshold.
Tax planning for years when the seafarer falls just short of 182 days abroad — managing the Indian tax liability that arises.
Our process
We collect your Continuous Discharge Certificate and travel records.
We count qualifying days abroad precisely to determine NRI status.
We determine taxable income and applicable exemptions for the year.
We file the return correctly — NRI return if qualifying, Resident if not.
Frequently asked questions
An Indian seafarer's salary from a foreign ship is not taxable in India if they are an NRI for that financial year — i.e. if they spend 182 days or more outside India. If the seafarer is a Resident (spending fewer than 182 days outside India), their salary — even received in foreign currency on a foreign ship — may be taxable in India. The 182-day threshold for Indian citizen seafarers on foreign ships is specifically provided for in the Income Tax Act.
Days spent outside India are counted from the Continuous Discharge Certificate (CDC), which records every departure and arrival. Days of actual travel (the day of departure and arrival) may be counted as India days or outside-India days depending on the exact time of crossing the border. We count each financial year meticulously — because being off by even one day can change the NRI status and the entire tax position.
Section 10(6)(viii) of the Income Tax Act provides an exemption for remuneration received as an official or staff member by a non-citizen employee of a foreign enterprise for services rendered in India when the enterprise is not carrying on any business in India. Some maritime taxation advisors apply this section to seafarers, but its applicability is fact-specific and often contested. We assess whether this section applies to your specific employment arrangement.
Yes. Once a seafarer qualifies as an NRI under FEMA (which uses a purpose and intent test rather than day count), they can open and operate NRE accounts. Salary received from the foreign ship can be directly credited to the NRE account, on which interest is fully exempt from Indian income tax. Funds in the NRE account are also freely repatriable. However, FEMA NRI status and Income Tax NRI status must both be confirmed — they use different tests.
If a seafarer falls short of 182 days outside India in a financial year, they are a Resident for that year. Their global income — including the salary earned on the foreign ship — becomes taxable in India. The salary cannot be simply ignored even if no Indian bank credited it. We help seafarers in 'short years' compute the actual Indian tax liability, identify any DTAA relief available, and file an accurate return.
Seafarers who are NRI for the year generally need to file an Indian return only if: they have Indian-source income (NRO interest, rent, capital gains) exceeding the basic exemption limit; or they have excess TDS deducted on Indian income and want a refund. A return should always be filed to establish the NRI position and carry forward losses. In Resident years, filing is mandatory if income exceeds the threshold.
Key documents include: the Continuous Discharge Certificate (CDC) with all joining and sign-off dates; salary slips or the employment contract showing foreign currency salary; Form 26AS showing TDS deducted on Indian income; bank statements for NRE and NRO accounts; and any Indian income documents (rent receipts, FD interest certificates). We compile the full document list and guide you through the submission.
Contact N D Savla & Associates in Panaji, Goa. We specialise in merchant navy taxation — precise sea-day counting, NRI status determination, ITR filing for both NRI and Resident years, NRE account compliance and TDS refund claims. We serve mariners from Goa, Mumbai and across India, and can assist entirely remotely.
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Book a free consultation with a qualified Chartered Accountant in Goa. We'll determine your NRI status, compute your liability and file your return — no obligation.