The Income Tax Act has laid down a simple definition for residential status for a member of a crew of an Indian ship who leaves India during the year.
Such a person shall be considered a Resident when –
- He is in India for at least 182 days
Therefore when this person spends less than 182 days in India in a year for that particular year he/she shall be considered a Non Resident.
If a seafarer or a sailor satisfies the condition above and is Resident in India in a year, entire income earned in that year of such a person is taxable in India. Even though his salary for the year may be credited in NRE account – it shall be taxable in India.
In case Income (before giving any deductions under section 80) is less than the minimum exemption limit of Rs 2,50,000, no tax shall be payable. If Income is more than minimum exemption limit of Rs 2,50,000 – income tax is payable and a Return must be filed.