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If you are an Indian citizen working as a crew member on a foreign-going Indian ship where the destination of the ship is outside India and are not sure whether you are a resident person or a non-resident person for income tax purposes and want to determine your residential status, then this blog is for you.
After reading this blog, being a crew member, you will be able to determine the correct residential status as per the Indian Income Tax Act.
Resident status of Individuals
Before diving into the provisions determining the residential status of a crew member, let’s first understand the provisions for determining the residential status of a normal person:
Under section 6(1) of the Income Tax Act, 1961, you qualify as a resident of India if you meet any one of the following conditions:
- You are in India for a period of 182 days or more during the relevant previous year** or
- You were in India for a total period of 365 days or more during the 4 years immediately preceding the relevant previous year** and (+) are for a minimum 60 days in India during the relevant previous year**
** Relevant previous year here means the year for which you are determining the residential status.
If you do not satisfy both the above conditions, the authorities will treat you as a non-resident.
Based on the above conditions, if you become resident in India then your global income is taxable in India subject to availing of credit of taxes paid in another country. On the other hand, if you become a non-resident, then income which is earned by you outside India is not taxable in India.
Now, let’s understand the provisions determining the residential status of a crew member who is a citizen of India and working on a foreign-going Indian ship:
Who Is Crew Member?
Crew member means an individual working on a ship or an aircraft and travels internationally as part of their job.
Resident Status of Crew Member of a Ship
If you are a citizen of India and you work as a crew member on a foreign-going Indian ship whose destination is outside India, you are treated as a resident of India when you stay in the country for 182 days or more.
For calculating the period of 182 days, the following period shall not be Included, in respect of such voyage:
| Period Starting From | Period ending on |
| the date entered into the Continuous Discharge Certificate (i.e., CDC) in respect of your joining the ship in respect of such voyage^. | the date entered into the Continuous Discharge Certificate (i.e., CDC) in respect of your signing off from the ship in respect of such voyage^. |
^ Voyage here means, the voyage undertaken by a ship engaged in the carriage of passengers or freight in international traffic having originated from any port in India and has its destination any port outside India and vice-a-versa.
Let’s understand the above with the help of following example:
You are an Indian citizen and a member of the crew of a Dubai going Indian ship engaged in the carriage of passengers in international traffic. The ship is departing from Gujrat port on 15-July-2025.
| The date entered into the Continuous Discharge Certificate (i.e., CDC) in respect of your joining the ship. | The date entered into the Continuous Discharge Certificate (i.e., CDC) in respect of your signing off from the ship. |
| 15-July-2025 | 25-January-2026 |
Now, in the above example, you are an Indian citizen and you leave India on 15-July-2025 as a crew member of an Indian ship. For the previous year 2025-26, India will treat you as a resident if you stay in the country for at least 182 days.
- The voyage is undertaken by an Indian ship;
- The ship is engaged in the carriage of passengers in international traffic;
- The ship is originating from the Indian port (i.e.; The Gujrat Port);
- The ship is having its destination outside India (i.e.; the Dubai Port)
Based on the above, we will not count the period from 15 July 2025 to 25 January 2026 when computing your stay in India. Accordingly, we will exclude 195 days (17+31+30+31+30+31+25).
Consequently, your period of stay in India during the previous year 2025-26 would be 170 days. (i.e.; 365 days-195 days)
Since, your period of stay during the previous year 2025-26 is less than 182 days, you are a non-resident for the previous year 2025-26 (Assessment Year 2026-27).
Resident Status of Crew Member of an Aircraft
For crew member of an aircraft, Income Tax Act does not contain any special provision for determining the residential status. In this case, normal provisions of section 6(1) are applicable. (Please refer above)
Conclusion
If you are an Indian citizen working as a crew member on an Indian ship traveling to another country, you will qualify as a resident of India only if you stay in India for 182 days or more. Accordingly, India will tax all income you earn as per the provisions of the Income Tax Act, 1961.