Fwd: [News] Income—Accrual—Salary accrued to non-resident seafarer for services rendered outside India credited in NRO account

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Fwd: [News] Income—Accrual—Salary accrued to non-resident seafarer for services rendered outside India credited in NRO account

Income—Accrual—Salary accrued to non-resident seafarer for services rendered outside India credited in NRO account

 

Assessee was a seafarer working in marine shipping non-resident for assessment year 2015-16 and rendered services outside India and earned salary income, which was remitted by the employer in NRO account maintained by assessee with SBI. The assessee was not having any permanent residence and bank account outside India. AO held that as assessee has received salary income in India, as per section 5(2)(a) the same was taxable in In

Section 5(2)(a) provides that only such income of non-resident would be subjected to tax in India that is either received or is deemed to be received in India. Accordingly, salary accrued to a non-resident seafarer for services rendered outside India on a foreign ship could not be included in total income merely because salary has been credited in the NRE/NRO account maintained with an Indian bank by the seafarer. The position was also made clear by CBDT Circular No. 13/2017, dt. 11-4-2017. Hence, AO was directed to delete addition.

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