Seafarers' income earned abroad not taxable: CBDT

In a relief to seafarers, the Government today said a non-resident seafarer's income for services rendered outside India on a foreign going ship will not be taxable.
"The salary accrued to a non-resident seafarer for services rendered outside India on a foreign going ship (with Indian or foreign flag) shall not be included in the total income merely because the said salary has been credited in the NRE account maintained with an Indian bank by the seafarer," an official statement issued here said.
The statement said after examining representations made by unions, the Central Board of Direct Taxes (CBDT) issued a circular on the matter on April 11 which was followed up with a corrigendum on April 26.

"In the recent past, the Income-Tax Tribunals had ruled that the Income of non-resident seafarers, which is directly received into their NRE Account maintained in India shall be taxable," it said, adding this led to the representations to the CBDT.