How is residential status determined?
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How is residential status determined?
From FY 2020-21, a citizen of India or a person of Indian origin who leaves India for employment outside India during the year will be a resident and ordinarily resident if he stays in India for an aggregate period of 182 days or more.
Are merchant navy Officers NRI?
Are seafarers NRI? Yes, if you are outside India for more than 184 days (or 185 days in a leap year) as per your CDC/passport then you are considered Non-Resident India under Income Tax Act 1961.
Is Seafarer an NRI?
Seafarers who stay in India for less than 182 days i.e., they sail outside India for 184 days or more, will be classified as a Non-Resident Indian (NRI) for the FY 2020-21. Being a Non-resident Indian, income earned outside India is not taxable in India.
The salary of a resident seafarer or merchant navy personnel will be taxed as per the Indian Income Tax Law. There are no income tax exemptions for merchant mariners/ seafarers.
What does residential status mean?
Residential status is a term coined under Income Tax Act and has nothing to do with nationality or domicile of a person. An Indian, who is a citizen of India can be non-resident for Income-tax purposes, whereas an American who is a citizen of America can be resident of India for Income-tax purposes.
How will you determine the residential status of an individual and HUF?
A resident HUF will be treated as resident and ordinarily resident in India during the year if its manager (i.e., karta or manager) satisfies both the following conditions: (1) He is resident in India for at least 2 years out of 10 years immediately preceding the relevant year.
In the military, the federal government generally only taxes base pay, and many states waive income taxes. Other military pay—things like housing allowances, combat pay or cost-of-living adjustments—isn’t taxed. You will still need to pay estimated taxes, but you’ll need to manage those payments yourself.
Can a merchant navy officer open PPF account?
answered on 16/11/2020 NRIs can’t open a PPF Account. However, if you had a PPF Account before becoming an NRI, then it can be continued till maturity (15 years) but can’t be extended further. Also, for NRIs, the gains from the PPF Account can only be withdrawn post maturity.
Can merchant navy people open PPF account?
Do seafarers pay tax?
The Seafarers’ Earnings Deduction permits 100\% of on-board earnings to be free of UK income tax. There are a number of conditions. The most important is that the earnings must relate to a qualifying of at least 365 days. This doesn’t mean that you need to be on-board ship for a year without coming ashore in the UK.