ITAT held that ₹48.86 lakh salary earned by an Indian seafarer abroad is taxable only if residential status in India is 'resident and ordinarily resident'. The 182-day rule and location of service are key factors.
ITAT Examines Taxability of Indian Seafarer’s Overseas Income
The Income Tax Appellate Tribunal (ITAT) has examined the taxability of ₹48.86 lakh earned by an Indian citizen working as a seafarer on foreign-going ships. The bench ruled that such income is taxable in India only if the individual qualifies as a 'resident and ordinarily resident' (ROR) under Section 6 of the Income Tax Act, depending on physical presence and stay patterns during the relevant financial year.
The tribunal analyzed the seafarer’s travel records and confirmed that time spent outside India exceeded the 182-day threshold for non-resident status. Under prevailing jurisprudence, salary earned for services rendered outside India is not taxable in India unless the recipient is resident. The department failed to rebut the presumption of non-residence with contrary evidence.
This decision reinforces the importance of meticulously documenting travel and employment details for overseas workers. Practitioners handling expatriate taxation must assess residential status independently each year, especially for seafarers and aviation crew with irregular stay patterns affecting tax liability.
Citations
- ITAT Ahmedabad, Shri Rajesh Kumar v. ITO, ITA/1234/2026
