Merchant Navy Taxation — It All Comes Down to Days at Sea.
Tax advisory for merchant navy officers and crew — residential status, salary credit, day counting and Indian tax treatment of income earned on foreign-going vessels.
Book Free ConsultationFor merchant navy personnel, the Indian tax outcome usually turns on a single question: how many days were spent outside India during the year, and whether that is enough to establish non-resident status. Get that right and salary earned abroad on a foreign-going vessel is generally outside the Indian net; get it wrong and the entire year's earnings can be brought to tax.
At N D Savla & Associates, we work with officers and crew on exactly this — reconstructing day counts from the Continuous Discharge Certificate and passport, applying the residency rules, and advising on how salary should be received and documented.
The evidence matters as much as the arithmetic. Sign-on and sign-off dates, the nature of the voyage, and where the salary is credited all form part of the picture, and these are the records the department asks for when a claim is examined.
Our Merchant Navy Tax Services
Day Count Reconstruction
Computation of days outside India from CDC entries, passport stamps and contracts.
Residential Status Determination
Determination of status for the year applying the tests relevant to seafarers.
Voyage & Vessel Assessment
Assessment of whether voyages qualify as foreign-going for the purposes claimed.
Salary Credit Advisory
Guidance on where and how salary should be received and the implications of each route.
Non-Resident Account Guidance
Advice on operating non-resident accounts and the treatment of interest earned.
Indian Income Reporting
Reporting of Indian income such as rent, interest and capital gains alongside the seafaring position.
Return Filing
Preparation and filing of the return of income reflecting the correct status and disclosures.
Documentation & Assessment Support
Compilation of the evidence file and support if the claim is examined.
Our How We Assess a Seafarer's Position
Record Collection
We collect the CDC, passport, contracts of employment and salary credit records for the year.
Day Counting
Days outside India are computed precisely against sign-on, sign-off and travel dates.
Status & Taxability Analysis
Residential status is determined and the taxability of salary and Indian income assessed.
Return Preparation
The return is prepared with the correct status and complete disclosure of Indian income.
Filing & Evidence Retention
The return is filed and the supporting evidence file is retained for future scrutiny.
Why It Matters
Frequently Asked Questions
Sailing on foreign-going vessels?
Send us your CDC and passport details — we'll compute your day count, confirm your status and file accordingly.
