Filing Income Tax Return (ITR) for Seafarer
As per Section 139(1) of the Income Tax Act, every individual must file their income tax return if their total income exceeds the maximum amount not chargeable to income tax before claiming deductions under Chapter VI A such as LIC, medical insurance premium, tuition fees, and other deductions under Section 80.
Filing an income tax return is also mandatory under the following circumstances
Has deposited an amount of Rs 1 crore or more in one or more current accounts during the financial year
Has incurred expenditure exceeding Rs 2 lakh for travel to a foreign country for self or any other person
Has incurred expenditure exceeding Rs 1 lakh towards consumption of electricity during the financial year
Is required to claim refund of taxes deducted at source
Wishes to carry forward losses under income tax provisions
Fulfills any other conditions as prescribed under the Income Tax Act
|
Details |
Maximum Amount (Rs.) |
|
Non-resident of any age group |
2,50,000 |
|
Resident below the age of 60 years |
2,50,000 |
|
Resident having age of 60 year or more but below 80 years |
3,00,000 |
|
Resident having age of 80 years or more |
5,00,000 |
The maximum amount not chargeable to tax for the financial year 2025 to 26 is as follows. Under the new tax regime which is now the default regime, income up to Rs 4,00,000 is not taxable. However, taxpayers including seafarers may choose between the old tax regime and new tax regime depending on their eligibility and tax planning requirements.
Who Should File ITR for Seafarers
Seafarers should file income tax returns in the following situations
-
- When income exceeds basic exemption limit
- When claiming tax refund
- When applying for visa or loan
- When maintaining financial records
- When earning income in India
- When required by tax authorities
Filing returns even when not mandatory helps maintain financial transparency and avoid future issues
File Your Seafarer ITR Today
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FAQs
Yes, you may receive a notice for not filing your income tax return. If you have maintained non-resident status and your total gross income from India is below the taxable limit, filing a return is not mandatory. However, it is advisable to file your income tax return regardless of your Indian income to avoid any scrutiny from the income tax department.
Yes, you should file your income tax return even if your income is not taxable. Here are the reasons:
– Sometimes, seafarers do not complete the required sea time to claim non-resident status. In such cases, it is mandatory to file a return if your total income exceeds Rs 2,50,000. Inconsistent filing (filing some years and not others) can raise red flags with the income tax department, leading to potential notices. Regular filing shows a clear record of your non-resident status in most years, avoiding unnecessary scrutiny.
– Filing returns is beneficial if you have income where TDS has been deducted, such as interest on NRO accounts, car purchases over Rs 10 lakh, and from FY 20-21, TDS on dividends from mutual funds and public companies.
– An ITR is useful for applying for housing loans, purchasing life insurance, or obtaining a visa.
– When purchasing property, providing your PAN is mandatory. If the IT Department finds no records of you, they may issue a notice to explain your income source for the property purchase.
– Banks share details of cash deposits, large transactions, and cash withdrawals with the IT Department. If there are no records of you, you might receive a notice to explain these transactions.
In India, the financial year runs from April to March, for example, April 2019 to March 2020. According to Section 15 of the Income Tax Act, salary is taxable on a due or receipt basis, whichever is earlier.
– If your March salary is credited to your bank account in March, it is taxable in the same financial year.
– If the salary is credited in April but is due on or before 31st March, it is still taxable for the previous financial year (ending March 31st).
For Merchant Navy employees, the salary is generally due on or before 31st March and should be included in the income for that financial year, even if it is credited in April. Also, learn in detail, about Merchant Navy Taxation.
I have completed my non-resident status. There is no option to report salary income in the income tax return as it is not considered taxable income for the purpose of income tax.