The Classic Partners LLP
Merchant Navy Taxation in India
Tax rules for merchant navy officers and crew hinge on NRI status and where salary is received. We compute your sailing days, protect your NRI status, and file your return correctly — every year.
Get Seafarer Tax HelpHow Merchant Navy Income is Taxed
A merchant navy professional's Indian tax liability depends entirely on residential status. As a non-resident, salary earned for services rendered outside India on a foreign-going ship is not taxable in India. As a resident, global income — including the full sea-service salary — becomes taxable.
The 182-Day Rule for Seafarers
- An Indian citizen leaving India for employment, including as a crew member of a ship, remains non-resident if their stay in India is less than 182 days in the financial year.
- For crew on foreign-bound Indian ships, the period from joining to signing off as per the Continuous Discharge Certificate (CDC) is treated as time outside India (Rule 126, Notification 70/2015).
- Maintain your CDC, passport stamps, and contract letters — they are the evidence of your day count if the return is questioned.
Salary Credited to NRE Account
CBDT Circular 13/2017 clarifies that salary of a non-resident seafarer for services on a foreign-going ship is not taxable merely because it is credited to an NRE account in India. The place where services are rendered — outside India — is what matters, not the bank account receiving the funds.
Interest on that NRE balance is also exempt income while you remain non-resident.
Our Merchant Navy Tax Services
Day-Count Audit
CDC and passport-based computation of days in and outside India.
NRI Status Protection
Voyage and leave planning before the 182-day line is crossed.
ITR Filing
Seafarer-specific ITR filing with TDS refunds on Indian income.
Short-Year Planning
Sign-on/sign-off year strategies via transition planning.
Notice Handling
Responses where the department questions residency or NRE credits.
Investment Advice
NRE/NRO structuring and exempt income optimisation.
Frequently Asked Questions
Is merchant navy salary taxable in India?
Not if the seafarer qualifies as a non-resident and the services are rendered outside India on a foreign-going ship. If the seafarer is resident for the year, the entire salary becomes taxable in India.
How many days can a seafarer stay in India and remain NRI?
A seafarer leaving India as crew of a ship remains non-resident if total stay in India is less than 182 days in the financial year; for eligible voyages on Indian ships, the CDC period from joining to signing off counts as time outside India.
Is salary credited to an NRE account taxable?
No. CBDT Circular 13/2017 confirms that a non-resident seafarer's foreign-ship salary is not taxable in India merely because it is received in an NRE account.
What documents prove a seafarer's NRI status?
The Continuous Discharge Certificate, passport with immigration stamps, employment contract, and sign-on/sign-off letters together establish the day count outside India.
Should a non-resident seafarer still file an ITR?
Filing is advisable to claim refunds of TDS on Indian income such as NRO interest, to document non-resident status year after year, and to maintain financial records for loans and visas.
Sailing this year and unsure of your tax status?
Send us your CDC and travel dates — we'll confirm your status and protect your sea income.
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