Taxation for Merchant Navy Employees
How residential status and NRE deposit rules apply to seafarers and merchant navy officers working on foreign-going vessels.
For a merchant navy employee serving on a foreign-going ship, the days spent on the vessel outside Indian territorial waters count as days outside India for the residential-status test — this is typically what lets seafarers qualify as Non-Resident. The Continuous Discharge Certificate (CDC) and voyage records are the primary evidence used to establish this, and salary credited to an NRE account while genuinely non-resident is exempt from Indian tax.
What we review for merchant navy clients
Status determination for seafarers depends entirely on documented sea time, not just total days outside India.
- Computing eligible NRI days using CDC and voyage records
- Confirming the vessel qualifies as a 'foreign-going ship' for the relevant voyages
- NRE account structuring for salary credited by a foreign or Indian shipping company
- Handling salary paid partly in India and partly abroad
- Provident fund, gratuity and other retiral-benefit treatment
- Filing requirements in years with mixed sea time and shore time
What this service includes
How we help you with your merchant navy tax position.
CDC & Voyage Day-Count Review
Verifying eligible NRI days from your Continuous Discharge Certificate and voyage records.
Residential Status Determination
Establishing your status for the year based on documented sea time.
NRE Salary Structuring
Advising on the right account structure for your shipping company salary.
Return Filing for Seafarers
Preparing your India return where filing is required or advisable.
Our process
From initial consultation to completion.
CDC & Voyage Record Collection
Gathering the documents that establish your time on foreign-going vessels.
Eligible Day Computation
Calculating days outside India using accepted seafarer rules.
Status & Exemption Determination
Confirming residential status and the resulting tax treatment of your salary.
Filing (if Required)
Preparing and filing a return where other India income or a refund claim applies.
Why seafarer taxation needs specific expertise
What sets our approach apart.
Wrongly counted sea days are a common cause of reassessment
Casual day-count without CDC backing rarely survives scrutiny.
CDC-based evidence is what authorities actually accept
We build your position on the documentation tax officers are used to reviewing.
Salary routing matters as much as status itself
Where and how your salary is credited affects whether the exemption is cleanly available.
your merchant navy tax position questions answered
What people ask before engaging us.
Ready for expert help with your merchant navy tax position?
Let our team help you navigate this process with clarity and confidence.
